LVMH acquires 50% of Jay-Z’s Armand De Brignac.
Jay-Z announced on Monday, Feb. 22 that he has sold half of his Armand de Brignac champagne company to French conglomerate, LVMH.
As per The New York Times, the deal gives Jay-Z the organizational support and distribution power of a global drinks machine.
“We were always looking to grow this brand,” said Jay-Z, “and this happened very naturally.”
The official financial terms surrounding the deal remain undisclosed but it’s safe to assume owning a 50% stake in Jay-Z’s luxury champagne line won’t be cheap. In 2018, the company known as Ace Of Spades was reportedly valued at $250 million. We cannot confirm this.
The Ace of Spades deal was initially discussed in the summer of 2019, when Hov hosted a lunch at his house for Bernard Arnault, LVMH’s founder, and Alexandre Arnault, the third child of Bernard Arnault.
Alexandre and Jay-Z are reportedly good friends, and the deal was brokered on the strength of their relationship.
“Once a month or more. “I’ll send him a photo of something going on with me or he’ll send me a photo,” Jay-Z said. “It’s super natural, super chill. I view him as a person of high integrity. Always keeps his word, very punctual. These are some of the qualities I have myself.”
This isn’t the first time the French luxury giant will be partnering with black creators and entrepreneurs. In 2019 the company teamed up with Rihanna to create the Fenty high fashion line. LVMH also owns Gucci, Dior and Givenchy.
JAY-Z acquired “Ace Of Spades” in 2014 from New York-based wine and spirits company Sovereign Brands for an undisclosed amount. He also has part ownership of D’Ussé cognac with Bacardi, which launched in 2012.