LVMH, a luxury brand owner and retailer, has paid $75 million for a 40 percent stake in compression wear brand 2XU through L Capital Asia, a $1 billion private equity fund its sponsors. The deal values 2XU at $166 million, or roughly 2.5 times it $65 million in annual sales.
Melbourne, Australia-based 2XU reportedly will use the investment to expand into Asia, Europe and the United States. 2XU’s line ranges from $60 T-shirts and $800 wet suits.
LVMH, a Paris company that owns the Christian Dior, Louis Vuitton, Givenchy and Moet Hennessy luxury brands and operates more than 3,000 stores worldwide, is known to take majority stakes in companies in the luxury end of the market, with a longer term view.
2XU was founded in 2005 by Clyde Davenport, triathlete James Hunt and sales and marketing specialist Aidan Clarke. The investment by L Capital investment will cut the trio’s stake in the company to 42 percent and Lazard Australian Private Equity’s stake to 18 from 30 percent.
