Alain Chevalier
Co-founder 1987Background
Moet Hennessy executive associated with the 1987 merger that formed LVMH.
Role at LVMH Moet Hennessy Louis Vuitton SE
LVMH possesses a complex, dramatic founding story, representing the historic amalgamation of French cultural heritage, eventually dominated and consolidated by a single, ruthless corporate raider. The conglomerate traces its deepest foundational roots to iconic, historic 'Maisons'. The 'Moët' lineage dates back to 1743 when Claude Moët began shipping prestigious champagne to Paris. The 'Hennessy' lineage was founded in 1765 by Richard Hennessy, an Irish military officer serving in the French army. The crown jewel, Louis Vuitton, was founded in 1854 as a prestigious trunk-maker. In 1971, Moët & Chandon and Hennessy executed a strategic merger to form Moët Hennessy. In 1987, fearing hostile foreign takeovers, Moët Hennessy executed a historic mega-merger with Louis Vuitton to form LVMH. However, the newly formed conglomerate was dysfunctional, plagued by a bitter, power struggle between the aristocratic heads of the two founding families (Alain Chevalier and Henry Racamier). The world-changing masterstroke occurred in 1989. Bernard Arnault, a brilliant, intensely aggressive real estate developer who had recently acquired the bankrupt Boussac empire (which owned Christian Dior), recognized the vulnerability in LVMH's chaotic boardroom. Invited in as a strategic 'white knight' investor, Arnault executed a ruthless, controversial boardroom coup. He played the feuding families against each other, secretly acquired a controlling stake through the open market, and ousted the founders. By seizing control of these historic, cherished French brands, Arnault transformed a dysfunctional alliance into the dominant architecture of the modern global luxury industry.