What: LVMH-backed private equity fund L Catterton is set to acquire Hammerson’s 42% stake in Value Retail, valuing the business at GBP 1.5 billion (USD 1.94 billion) and providing Hammerson with GBP 600 million (USD 775 million) in cash proceeds.

Why it is important: The acquisition aligns with LVMH’s strategy to enhance its selective retail portfolio and leverage Value Retail’s growth potential, while Hammerson plans to reduce debt and reinvest in higher-yielding assets.

LVMH’s private equity fund, L Catterton, will acquire Hammerson’s 42% stake in Value Retail, the parent company of The Bicester Collection, for GBP 600 million. This strategic move values Value Retail at GBP 1.5 billion and marks LVMH’s intent to bolster its retail offerings. The deal allows Hammerson to exit from a low-yield investment, using the proceeds to reduce debt, reinvest in core assets, and buy back shares. Value Retail’s high-quality portfolio and luxury reputation are expected to benefit from L Catterton’s expertise, while potentially creating synergies with LVMH’s selective retail arm. The acquisition signifies LVMH’s commitment to expanding its influence in the luxury retail market.

LVMH expands retail portfolio with acquisition of Value Retail stake