Could Riva Become LVMH’s Next Maison?

There are some industry whispers that the powerhouse LVMH are interested in a purchase of the most yachting-synonymous brand, Riva.

I wanted to investigate whether this is a) likely and b) made any sense at all.

I live under a rock – who are Riva?

Founded in 1842, Riva is the brand most connected with yachting. The classic highly-varnished mahogany day-boats have been perched on top of lake Como, cruising around Portofino and appearing in Slim Aarons’ collections for decades.

Riva resonates beyond the people lucky enough to be able to ride in one, like that of Rolex or Mercedes. They define a lifestyle.

In 2000, after an unsettling couple of decades including changes of ownership and a decline in perceived prestige, they were acquired by the Ferretti group and have been excelling under their banner since as Ferretti’s true premium product. The crown jewel in an impressive brand arsenal!

Is there a cultural fit with LVMH?

LVMH are far more than a fashion powerhouse. The conglomerate own major hospitality brands (like Belmond) and operate organisations with big cultural relevance to the yachting crowd (Tiffany, Chateau Minuty, Rimowa) – so from the macro-lens, sure, it makes sense.

However, running and operating a profitable shipyard is a very different game; with Riva’s current lineup offering yachts up to 54m and over EUR 35,000,000 purchase price – which will make the yacht the most expensive single product offered in the LVMH roster by a magnitude of many.

LVMH traditionally don’t purchase up-and-coming, disruptor brands. They don’t take that perceived risk. They purchase companies which are established and have a cultural following before trying to cost-save to increase profits. A squeezer, not a builder. Riva is a huge brand name with decades of heritage, a big green flag for the Arnault family. 

What is the pull for LVMH?

So, what would LVMH be buying here?  Riva has an exclusive, multi decade relationship with Officina Italiana Design (headed by Mauro Micheli and Sergio Beretta). This partnership was extended to 2030 which guarantees LVMH another 4 years at least of the ‘Riva’ look in their product launches. This design IP is locked-in.

Their industrial footprint in the yachting industry is also secured for the foreseeable. They have yachts ranging from 8m to 54m, which in this game is quite a crazy feat. Lots of shipyards target a niche, get exceptionally good at that niche and tend to stick there – differentiating themselves from their competitors.

Riva on the other hand has always been the day-boat King, but managed to expand from there and build a credible and revered superyacht range. Building a varied range rivalled by other sub-60m brands.

They build their boats in three facilities, Sarnico, La Spezia and Ancona – each specialising in different sizes depending on hull material (core, larger composites and aluminium / steel) – this size versatility not only opens initial demand but also creates an ecosystem of owners who ‘ladder up’ and grow with the brand as their wealth and appetite for yachting increases.

Another huge positive of the brand is the leverage achieved from years’ working with the Ferretti distribution channels. Perhaps one of the most successful dealer networks in the industry offering 55+ organisations across 70+ countries, Ferretti have established key relationships in key regions where they can offer their products easily with minimal sales / marketing efforts.

These established dealers already know the product, push the product and have an audience – LVMH can know before the purchase that realistically, they don’t need to be setting up these logistical distribution networks, they are ready to utilise from day 1 of ownership (providing they are included in the deal).

What do LVMH know about yachting?

From the other side of the negotiating table, LVMH also have a good history of immersion within yachting.

They first got involved in 2008 when they purchased 75% of Princess Yachts in the UK, estimated at the time to be worth around £200 million – solidifying their presence with a high-volume builder and considered one of the more entry-level brands in the marketplace.

A few months later they then purchased Royal Van Lent, one of the two shipyard partners at Feadship – this gave LVMH credibility at the top end of the market, something they are familiar with in differing industries, now completing what many would consider a portfolio of shipyards which could cater to any client requirements.

Both acquisitions were on the back of the financial crisis – and LVMH does have a history of buying companies in times of economic decline, which makes me think - could they be foreseeing an upturn in demand?

LVMH exited from Princess in 2023 but remain heavily involved with Royal Van Lent, where the big boss himself even had a yacht built and launched in 2015 under the name SYMPHONY, and was at the time the largest yacht Feadship had ever produced.

What are the financials looking like?

Ferretti’s last financial statement was their half year 2025 report which covers the period ending June 30^th .

The report covers all of their brands (including Riva, Wally, Custom Line, Pershing, CRN, Itama) and shows a modest revenue growth of 1.5%, however this could be realised gain from yachts ordered pre-dip-in-demand.

Interestingly, their order intake is down 9.2% YoY, which, with a group as large and diverse as Ferretti, is a clear indication of major slowing demand. The company is still profitable with growing cash reserves but is clearly facing a time of slowing growth.

Ferretti doesn’t share the individual brands’ revenue share, however we know Riva are able to charge a premium margin within the group due to its brand, design and lifestyle heritage – definitely making her the crown jewel within the company.

Market in general – is now a good time to buy?

With their ownership (and dominance) of the 70m+ fully custom market, LVMH can plug the gap in their lifestyle yacht range. Purchasing a brand name which elevates above the rest of their competitors (think Dior, or Dom Perignon).

Ferretti is solid but not explosive. They certainly won’t be purchasing at the top of the market or be paying a price too frothy – with the macro and geopolitical climates (read: carnage) I am sure the price achieved would be fair.

Despite the global volatility, the UHNW demand for iconic, lifestyle anchored assets is still there – yachts are still selling, shipyards are still busy. LVMH thrives on buying heritage brands and scaling them beyond what was previously obtained, they will undoubtedly see and plan for a big upside.

The synergy is obvious. The Maison’s within the LVMH group are already doing numerous water-based branded events, the group love the Americas Cup, the client base is engaged and ready to be upsold into the yachting lifestyle. The partnership possibilities with TAG, Moet etc are literally endless.

But...

The current decline in order volume clearly signals cyclical pressure. Could LVMH wait a little longer and see this bear any more fruit in the price on the deal?

Ferretti group is a listed entity in both Milan and HK and the group mostly owned by Weichai and Piero Ferrari. I can’t even imagine how complex that negotiation table will be – spinning out their diamond brand would be messy.

Operationally, running Riva will be unlike anything LVMH are currently doing. Sure, they have the experience of Princess, but this was ultimately a situation they removed themselves from, what were the reasons? Would Riva be any different?

Although their other brands are luxury and ultimately, expensive, they are still somewhat attainable. How would their marketing change for Riva? I am sure a billboard during Paris fashion week won’t cut it. We aren’t selling handbags or jewellery here.

If I were advising this deal

My read on the above is this is certainly a better time for LVMH to buy than it is for Ferretti to sell.

Who knows how heightened tensions across the geopolitical landscape will affect the yacht market in the next 6, 12, 18 months – no one expected a global pandemic to soar the yacht industry to completely new heights for example.

But they are some hidden risks here. Riva’s USP is their exclusivity, their illusiveness as a product and the heightened craftsmanship of their Italian builders. LVMH’s huge scale could push brand collabs too far, potentially diluting their image and undermining the current mystique.

Also, by carving Riva out of the Ferretti brand, LVMH may have to set up their own dealer network, and possibly even some of their own build processes (engineering, hull design, after-sales) – this is a huge operational task and requires LVMH to build these connections with organisations that are, mostly, very different to Feadship.

Riva is a cultural asset in Italy – how will the unions and local governments take to a French brand at the helm, ultimately trying to protect a share price?

If I was structuring this, some sort of transitional service agreement would have to come into play, which ensures Ferretti Group continue to provide the technical, engineering and after-sales support for a period while LVMH are building their own systems.

I would also ensure there is some sort of reciprocal partnership on future IP and engineering platforms (hull manufacturing, propulsion systems, stabilisation technology) – maybe a shared R&D burden to allow the brands to continually work with each other and benefit from their vast knowledge, rather than a clean cut in responsibility.

Maybe most importantly, I would ensure the client data / CRM transfer is set in stone. LVMH’s biggest opportunity here is the existing Riva owners’ club, as well as the historic data of clients who have enquired about the brand in the past – this is the leverage needed to make any deal make sense.

So, will it happen?

No idea! But with falling Ferretti sales data, and a LVMH share price which is plummeting, this could either really make sense as a buying opportunity, or be too much of a stretch for the luxury powerhouse who might be battening down the hatches right now.

However, with their luxury ecosystem integration, events and experiential marketing and a truly global retail presence – LVMH have plenty of avenues to grow an elite heritage brand like Riva.

There is usually no smoke without fire, so my money is on the transaction happening. Kim Jones designed Riva soon come!