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(Bloomberg) — A family office backed by members of the Hermes fortune are among the likely buyers of French insurer Albingia, in an investment that signals a goal to diversify their wealth away from luxury.
Krefeld Invest, the family office of heirs to the luxury goods fortune, is part of an investor group that’s in exclusive talks to buy the insurer from asset manager Eurazeo, according to a statement on Wednesday. The consortium is being led by existing shareholder the Chamoin family and also includes Canadian insurer Fairfax Financial Holdings.
Eurazeo SE said it expects to sell its entire 70% financial stake in Albingia, bringing around €289 million ($303 million) of sale revenue to its balance sheet.
The Hermes fortune derives from its namesake firm Hermes International SCA, known for selling pricey Birkin handbags. The family’s wealth is estimated at about $171 billion, according to the Bloomberg Billionaires Index.
Krefeld brought together into a single entity eight Hermes family offices and investment vehicles that had been created by heirs from various branches of the sprawling clan. Named for the village in western Germany where founder Thierry Hermes was born, it’s charged with investing the personal wealth of its backers, who bear surnames including Puech, Mommeja and Dumas.
The family office has remained secretive about operations, management and strategy since its creation in 2022. The Albingia deal is one of the first investments for Krefeld that has been announced publicly, and signals a goal of diversifying their assets.
The first executives of Paris-based Krefeld were Matthieu Dumas and Henri-Louis Bauer, according to a company filing. Dumas is a member of the Hermes supervisory board.
Albingia is an independent player in the French commercial insurance lines market, which collected about €334 million in insurance premiums last year. Eurazeo bought a stake in the business six years ago, based on an enterprise value of around €508 million.
Albingia Chairman Bruno Chamoin and his family are the owners of the wine group Blacailloux, located in the Provence region.
The deal is subject to approval of various relevant authorities and is set to close in spring 2025.
–With assistance from Devon Pendleton.
©2024 Bloomberg L.P.
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