LVMH acquires 10% stake in Chinese brand Ochirly

French luxury goods conglomerate LVMH – Louis Vuitton Moet Hennessy has paid US$200 million for a 10 per cent stake in Chinese fashion brand Ochirly.

The buyout gives L Capital, LVMH’s private equity arm, to hold a direct stake in the family-owned Ochirly which has total value of US$2 billion.

The investment gives L Capital an opportunity to break into China’s strong fashion industry while Ochirly gains recognition through having a global investor.

LVMH and Groupe Arnault set up L Capital in 2001 with the aim of acquiring deals targeting consumer-driven sectors including luxury, health care and other retail goods.