Under the terms of the agreement, Dieter Morszeck, grandson of the founder of Rimowa, will sell a majority stake to the LVMH Group while continuing to hold equity in the business and maintaining his leadership functions.

Founded in Cologne in 1898, luggage and leather goods maker Rimowa has become know for its innovative, high-quality luggage over the years. The business has built its reputation designing lightweight and easy to use luggage.

One of the milestones of the company has been the launch of the first polycarbonate suitcase in 2000, with a  patented system which ensures optimum stability. More recently, in partnership with Lufthansa, Rimowa has launched the Rimowa Electronic Tag. This innovative feature simplifies baggage check-in by matching, with the use of a smartphone, the boarding card with a Bluetooth electronic tag integrated only within Rimowa suitcases.

Now Rimowa will joint the luxury giant LVMH and become the first German Maison of the LVMH Group. Upon completion of the transaction, Alexandre Arnault, son of LVMH Group’s CEO, Bernard Arnault, will be appointed co-CEO of Rimowa. The transaction, subject to the approval of the competition authorities, relates to 80% of the shares for a value of 640 million euros and is due to complete in January 2017.

Rimowa's revenue for 2016 is expected to exceed 400 million euros.