|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||531.20 - 536.30|
|52 Week Range||278.70 - 545.20|
|Beta (5Y Monthly)||0.90|
|PE Ratio (TTM)||57.09|
|Earnings Date||Jan 26, 2021|
|Forward Dividend & Yield||6.00 (1.13%)|
|Ex-Dividend Date||Apr 20, 2021|
|1y Target Est||319.92|
Global luxury conglomerate and Moet & Chandon parent company LVMH (OTC: LVMUY) bought a 50% stake in rival high-end champagne company, Armand de Brignac, The Wall Street Journal reported. What Happened: Armand is owned by rapper and mogul Shawn "Jay-Z" Carter. It's among the youngest champagne brands and best known for its iconic metallic bottles that sell for hundreds of dollars each. A combination with LVMH will help Armand realize superior growth by tapping LVMH's existing global distribution networks. Jay-Z invested in Armand in 2014 and later on bought out his partner, spirits company Sovereign Brands. Jay-Z told WSJ his brand has been growing faster than expected and it was a challenge to maintain the brand. The youth of his company may have also played a role in accepting an investment from LVMH. "We'd been in this 15 years, not a hundred," Carter said. Financial terms of the transaction were not disclosed. The combination may have started several years ago when Jay-Z met LVMH CEO Bernard Arnault's son, Alexandre, in Paris. Related Link: Why Shawn 'Jay-Z' Carter Took His Cannabis Brand Public, And Other Highlights From The KCSA Cannabis Investor Conference Why It's Important: The investment could also be due to the COVID-19 pandemic as a surge in canceled weddings and other celebrations resulted in a 20% decrease in champagne sales in 2020. But to say the brand or industry is in peril might be a mistake. "We're connecting with things that are well made, and things that survive," Jay-Z said. What's Next: Jay-Z said he will likely collaborate with LVMH on other projects in the future. (Photo: Jay-Z, Joella Marano via Wiki Commons; champagne, Armand de Brignac) See more from BenzingaClick here for options trades from BenzingaYes, Even Taco Bell Is Entering The Chicken Sandwich BattleEx-FDA Commissioner Gottlieb On COVID-19: 'Things Will Be Normal In The Spring And Summer'© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- LVMH’s Moet Hennessy has bought a 50% stake in Armand de Brignac, a Champagne producer owned by rapper Jay-Z, another sign of a close relationship between the luxury industry and hip-hop culture.No financial terms were disclosed for Monday’s transaction. Armand de Brignac sold more than half a million bottles in 2019, prices of which run $300 and up.The rap star has been an investor in the brand since 2006, when he touted the brand, known for its Ace of Spades logo on a metallic silver bottle, in a video for “Show Me What You Got.” Jay-Z bought out Sovereign Brands’s stake in the company in 2014.“Armand de Brignac breaks barriers and reflects contemporary luxury, while preserving the tradition of the Champagne terroirs,” Philippe Schaus, chief executive officer of LVMH’s Moet Hennessy drinks unit, said in a statement.The brand is set to gain from the luxury-marketing expertise and distribution network of LVMH just as the Champagne industry reels from the pandemic. The market shrank by a fifth last year amid delays and cancellations to weddings and other celebrations. LVMH, whose brands include Moet & Chandon Champagne and Hennessy Cognac, outperformed, with wine and spirit sales dropping 14%.The deal is the fruit of connections between Jay-Z and Alexandre Arnault, the 28-year old son of LVMH’s billionaire founder, Bernard Arnault. Alexandre has been taking a bigger role at the conglomerate, recently being named to help run Tiffany & Co., which became part of LVMH last month. He previously ran Rimowa after persuading LVMH to acquire the German suitcase brand.The rapper threw an Oscars party last year where guests like Kanye West and Jack Dorsey could sip his Armand de Brignac Champagne.LVMH’s bet on global celebrities hasn’t always paid off. The luxury conglomerate announced earlier this month it was suspending its collaboration with Rihanna for the Fenty fashion brand, less than two years into that venture.The Wall Street Journal and Financial Times previously reported Monday’s dealFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Under the terms of the partnership, the luxury conglomerate will take over distribution of the Armand de Brignac prestige Champagne brand, commonly know as Ace of Spades.