French luxury group LVMH, owner of the Louis Vuitton brand, has agreed to buy an 80 percent stake in German high-tech luggage maker Rimowa for 640 million euros ($716 million).
The transaction, LVMH's first acquisition in Germany, must be approved by competition authorities. It is due to be completed in January 2017, the statement said.
Founded in Cologne in 1898, luggage and leather goods maker Rimowa expects a 2016 revenue of over 400 million euros.
LVMH is buying the stake from Dieter Morszeck, grandson of the founder of Rimowa, who will retain a stake in the business and maintain his leadership functions.
Alexandre Arnault, one of the sons of LVMH boss Bernard Arnault, will become co-chief executive alongside Morszeck.
Rimowa is known for making the first aluminum flight case in 1937 and the first lightweight polycarbonate suitcase in 2000.
It recently joined forces with Lufthansa to launch the Rimowa Electronic Tag. This feature simplifies baggage check-in by matching, with the use of a smartphone, the boarding card with a Bluetooth electronic tag integrated within Rimowa suitcases.