Luxury goods conglomerate LVMH in talks to buy Rapha

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According to the Daily Mail, luxury goods conglomerate LVMH is in talks to buy Rapha, marking another potential step into the realm of sports products for the company already reportedly negotiating a purchase of Pinarello.

Comprising brands like Louis Vuitton, Christian Dior, Moët & Chandon, Hennessy, and others, LVMH’s portfolio spans a variety of industries, from fashion and cosmetics to beverages. The conglomerate is reportedly interested in expanding its portfolio into sports and leisure. A high-end Italian bike manufacturer and a company with a stated mission of creating "the finest cycling clothing and accessories in the world" would seem a natural fit.

According to the report, Rapha had a pre-tax profit of £1.1 million for the year to January 31, 2016. Rapha spent four years as the official kit provider of Team Sky, a partnership that came to the end of the 2016 season. It also supplies kit for the Canyon-SRAM squad.