Mulberry’s founder suggests a strategic alignment with luxury giant LVMH as a more fitting partnership, following a takeover bid by Frasers Group.
- Roger Saul, the founder of Mulberry, feels the brand has become overly reliant on handbags and seeks a more holistic approach.
- Saul believes that Frasers’ offer undervalues Mulberry’s future potential, despite being a notable premium over recent share prices.
- The board at Mulberry rejected Frasers’ bid, emphasizing the company’s substantial long-term value.
- Saul acknowledges the potential for LVMH to step in, highlighting its strength and the cost benefits of partnering with an established brand.
In a strategic shift, Mulberry’s founder has expressed a preference for aligning with luxury conglomerate LVMH following a recent takeover offer by the Frasers Group. Roger Saul, the brand’s originator, feels that Mulberry has grown too dependent on its handbag sales. He advocates for revitalizing the brand’s original spirit, indicating a need for diversification beyond just handbags.
The takeover bid from Frasers Group, led by Mike Ashley, was valued at £83 million, offering 130p per share. Despite this being a 30% premium on Mulberry’s recent stock price, the board remains unconvinced. The leadership argues that the proposal doesn’t fully capture Mulberry’s substantial growth and potential future value.
Roger Saul, sharing his perspective with ‘This is Money,’ notes, ‘Ashley is a good retailer, but the company has been teed up and a battle created.’ He suggests that a collaboration with LVMH presents a compelling opportunity, given the formidable reputation and resources of the luxury firm. Saul underscores the prohibitive costs involved in building a brand like Mulberry from scratch, implying that joining forces with an established player like LVMH could provide significant benefits.
The potential for LVMH to engage with Mulberry underscores the brand’s ongoing strategic realignment.
