LVMH buys majority stake in Italy's Loro Piana

French luxury conglomerate LVMH will assume control of Italian exclusive ready-to-wear fashion group Loro Piana by buying an 80 percent stake for about 2 billion euros ($2.5 billion), the company said in a statement Monday. LVMH said that the Loro Piana family will keep the remaining 20 percent share, and that the Italian company's current directors, Sergio and Pier Luigi Loro Piana, will keep their posts. For LVMH, the stake opens up access to a particularly high-end and symbolic Italian fashion brand that has been in the same family for six generations. The Italian fashion house is famed for its high quality clothing by using rare and precious materials such as cashmere. The average price for a Lorna Piana piece of clothing is estimated at around 4,500 euros. LVMH said the change in ownership will have a positive earnings effect as of the first year. Loro Piana's turnover for 2013 is expected to reach around 700 million euros while its pre-tax profit is forecast to come in at around 150 million euros. The deal needs approval from regulatory authorities.