TOP BUSINESSMAN

Bernard Arnault

 

Bernard Jean Étienne Arnault (French: [bɛʁnaːʁ aʁno]; born 5 March 1949) is a French businessman and an art collector. He is the chairman and Chief Executive Officer of LVMH since 1989.

His father Jean Leon Arnault was a manufacturer and the owner of a civil engineering company, Ferret-Savinel. After graduating from the Maxence Van Der Meersch High School in Roubaix, Bernard Arnault was admitted to the École Polytechnique (X1969) from which he graduated with an engineering degree in 1971.

After graduation, in 1971, he joined his father's company. In 1976, he convinced his father to liquidate the construction division of the company for 40 million French francs, and to change the focus of the company to real estate. Using the name Férinel, the new company developed a specialty holiday accommodation. Named director of company building in 1974, he became CEO in 1977. In 1979, he succeeded his father as president of the company.

In 1984, with the help of Antoine Bernheim, a senior partner of Lazard Frères et Cie., Bernard Arnault acquired the Financière Agache, a luxury goods company. He became the CEO of Financière Agache, and therefore took control of Boussac, a textile company in turmoil. Boussac owned Christian Dior, the department store Le Bon Marché, the retail shop Conforama and the diapers industrial Peaudouce. Bernard Arnault sold nearly all the company's assets, keeping only the prestigious Christian Dior brand, and Le Bon Marché department store.

In 1987, shortly after the creation of LVMH, the new luxury group resulting from the merger between two companies, Bernard Arnault exploited a growing conflict between Alain Chevalier, Moët Hennessy's CEO, and Henri Racamier, president of Louis Vuitton. The new group held property rights to Dior perfumes, which Bernard Arnault craved to incorporate into Dior Couture.

In July 1988, Bernard Arnault fronted $1.5 billion to form a holding company with Guinness that held 24% of LVMH’s shares. Following rumors that the Louis Vuitton clan was buying LVMH’s stocks to form a “blocking minority”, Bernard Arnault spent another $600 million to buy another 13,5% of LVMH, making him LVMH’s first shareholder. In January 1989, Bernard Arnault spent another $500 million to control a total of 43,5% of LVMH, and 35% of voting rights, thus reaching the “blocking minority” he needed to stop the dismantlement of the LVMH group. On 13 January 1989, Bernard Arnault was unanimously elected chairman of the executive management board.

Since then, Bernard Arnault led the company through an ambitious development plan, turning it into one of the largest luxury groups in the world, alongside Swiss luxury giant Richemont and French based Kering. In eleven years, LVMH value has been multiplied by fifteen. In the meantime, the sales and profit progressed by 500%. Bernard Arnault promoted the decisions decentralization concerning the brands of the group. The brands are now considered as firms with their own familial history.

Bernard Arnault thinks LVMH has "shared advantages": the strongest brands help financing those that are growing. Bernard Arnault has a portfolio of major brands from the luxury sector for which the stability is secured. This solidity allows new acquisitions and the group development. Thanks to this strategy, Christian Lacroix could open his own fashion house.

In July 1988, Bernard Arnault acquired Céline. In 1993, LVMH acquired Berluti and Kenzo. In the same year, Bernard Arnault bought out the French economic newspaper La Tribune. He could not turn it around, in spite of the 150 million euro of investment. He sold La Tribune in November 2007 in order to buy the other French economic newspaper Les Échos, for 240 million Euros.

In 1994, LVMH acquired the perfume firm Guerlain. In 1996, Bernard Arnault bought out Loewe and it was followed by Marc Jacobs and Sephora in 1997. Were also integrated to the group: Thomas Pink in 1999, Emilio Pucci in 2000 and Fendi, DKNY and La Samaritaine in 2001.

In the 1990s, Bernard Arnault decided to gather his activities in a unique building in New York in order to symbolize LVMH’s strength and grandeur in the United States. He chose Christian de Portzamparc to realize this project. On 8 December 1999, the LVMH Tower was unveiled in front of Hillary Clinton.

Between 1998 and 2001, Bernard Arnault invested in many web companies: Boo.com, Libertysurf and Zebank through his holding Europatweb. Groupe Arnault also invested in Netflix in 1999.

In 2007, he acquired 10.69% of France's largest supermarket retailer and the world's second largest food distributor, Carrefour through his Blue Capital, which is jointly owned by California property firm Colony Capital.

In 2008, he invested into the yacht business and bought Princess Yachts for 253 million Euros. He then took control of Royal van Lent for an almost identical sum.