It has been revealed that LVMH has purchased a controlling stake in the upmarket German luggage company Rimowa for €640 million (£560 million) – this is the first purchase that LVMH has made in Germany.

Rimowa was founded over 100 years ago and is best known for its 1937 aluminium luggage, which is widely recognised by its parallel grooves.

Dieter Morszeck, the grandson of Rimowa's founder, said the sale to LVMH guaranteed "a promising future to all Rimowa employees".

Mr. Morszeck also plans to give a “substantial” amount of the sale proceeds to the Rimowa Dieter Morszeck Foundation, as well as retain a share of the business becoming co-chief executive of Rimowa, working alongside LVMH’s Alexandre Arnault, son of LVMH’s chief executive Bernard.

Exane BNP Paribas analyst Luca Solca said the deal "follows the acquisition of Tumi by Samsonite, removing the only other meaningful high-end luggage brand from the market. Luggage should be favoured by the continuing development of tourism."