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.”