L Capital acquires Princess Yachts

The consortium, sponsored by Groupe Arnault, the investment vehicle of French billionaire Bernard Arnault, and Moët Hennessy-Louis Vuitton (LVMH), the luxury goods company he runs, signed the agreement to proceed with the sale on May 30.

According to London's Telegraph newspaper, L Capital plans to back the boatbuilder's chairman David King and managing director Chris Gates, who could both get some equity in the new vehicle.

"L Capital has recognised in Princess one of the leading yacht companies in the world, with a long standing tradition of building modern sophisticated, high quality yachts with excellent sea keeping, under the leadership of a remarkable group of managers," says Daniel Piette, chairman of L Capital and member of the LVMH Executive Committee.

David King, managing director and founder of Princess Yachts, says: "This new partnership will bring lots of opportunities for Princess. We could not have found a better partner who shares our vision for growth and who will help us develop a stand alone business that benefits from the expertise of its sponsors."

Founded in 1965 as Marine Projects (Plymouth) Ltd, Princess Yachts is one of the UK's leading boatbuilders, responsible for a wide range of Flybridge and V Class Sport motoryachts. The company's immediate parent undertaking is the Renwick Group, which is owned by South African billionaire Graham Beck.

It is understood that the sale will have no effect on the distribution of Princess Yachts in this country. In a deal ratified in 2006, Princess distribution was taken over by Riviera and that is likely to remain unchanged.