The transaction, subject to the approval of the competition authorities, relates to 80% of the shares for a value of €640 million and is due to complete in January 2017. Under the terms of the agreement, Dieter Morszeck, Owner and CEO, Rimowa, is to sell a majority stake to LVMH while continuing to hold equity in the business and maintaining his leadership functions.

Rimowa, whose revenue for 2016 is expected to exceed €400 million, will become the first German ‘Maison’ of the French conglomerate. Upon completion of the transaction, Alexandre Arnault, aged 24 and son of LVMH Group’s CEO, Bernard Arnault, will be appointed co-CEO of the luggage maker.

“Rimowa is a brand with a unique heritage. We share with Dieter Morszeck the same passion for innovation and a common desire to offer very high-quality products derived from a European tradition of craftsmanship”, said Bernard Arnault in a statement.

Founded in Cologne, Germany, in 1898, Rimowa also sells a range of purses, wallets, and other accessories such as iPad cases in high-quality calf leather.