Opportunistic Restructuring and Asset Flips

"Bernard Arnault is one of the best financiers of his time. He likes to buy, restructure, buy again, and restructure again."

"The providential opportunity came with Peaudouce. The last French diaper company is very profitable. It generates a turnover of 2.1 billion francs and makes nearly 100 million in profits. Arnault will be able to sell it at a high price. Therefore, he begins negotiations with the Swedish group Mölnlyck in the fall. As a skilled negotiator, he manages to impose his price: 2 billion francs. This decision provokes the anger of the public authorities who threaten to refuse the sacred authorization for foreign investments in France to the Swedish group. "Peaudouce was too small to resist the global giants in the sector," argues Bernard Arnault. On January 20, 1988, he signs the sales agreement. At the same time, during a lunch with Christian Derveloy, the president of Prouvost, he negotiates the sale of his textile activities. 14."

"At the beginning of 1985, Bernard Arnault took stock. Since his visit to the Willot brothers six months ago, he has come a long way. He got what he wanted: the fashion house Dior, the flagship, but also a distribution group (Conforama, Belle Jardinière, and Bon Marché) with interesting real estate assets. He also acquired packaging factories and Peaudouce baby diapers. The downside: a dilapidated textile group."

"Are not lost businesses those that reserve the biggest surprises and the biggest profits in case of success? It is enough to study them, better than anyone else, and to work on them without leaving anything to chance."