Founders · Mar 5Bernard Arnault (The Richest Man in the World)
Arnault bought Boussac only to get Dior, which had 260 licenses, too few boutiques and a failed ready-to-wear line. He moved to own distribution through exclusive shops, and selling part of Dior as a holding raised 3.3 billion francs to buy LVMH shares.
Tips
- Arnault used a ladder of holding companies to control targets with other people's money▶ 37:02Turning Dior Couture into a holding company and offering its capital to private investors raised 3.3 billion francs to buy more LVMH shares.
- Arnault bought Boussac only to get Dior, then sold off the declining textile assets▶ 18:10The acquired episode notes he turned a failing asset into roughly 100 million in cash flow within two or three years.
- Arnault set out to own Dior's distribution and cut its 260 licenses▶ 29:25The host notes he still tries to own distribution today.
