The deal comes four years after the then Bonhams & Brooks merged with Phillips, taking a 50.1 per cent stake in the newly formed business, with the remaining shares held by LVMH, the luxury goods group headed by French entrepreneur and collector Bernard Arnault, who bought Phillips in 1999.
In the intervening years, Bonhams, headed by chairman Robert Brooks, have embarked on a global programme of rebranding, expansion and acquisitions, most notably taking over leading West Coast auctioneers Butterfields in a deal with eBay.
Bonhams say profits have enabled them to buy out the 49.9 per cent stake at a time when LVMH want to focus on their core luxury goods business.
“The relationship between the two companies remains cordial and Bonhams’ existing links with LVMH brands will continue,” said a statement.
It is not yet clear how the deal will affect operations at Bonhams – Mr Brooks has been in sole charge of the firm since the beginning, with LVMH seen very much as a sleeping partner. But he was upbeat in his assessment: “We are enormously grateful to LVMH for seeing us through this period of growth and change, and for agreeing to allow us to buy back their stake. This is a key management decision which once again gives the original Bonhams management team the freedom to continue to grow the company into a world beating brand.”
Bonhams buy out LVMH stake
LVMH have sold their 49.9 per cent shareholding in auction house Bonhams 1793 back to Bonhams.
