U.S. Firm in Talks to Buy Christian Lacroix From LVMH

The Falic Group, a privately-held U.S. acquisition company says it is in final negotiations with French luxury goods group LVMH to buy its money-losing Christian Lacroix haute-couture house.

Simon Falic, one of the three brothers behind the Falic Group, told Reuters he expected the deal to be completed soon but could not say when it might be sealed or what the price would be.

The Falic brothers, Americans of Israeli and Russian origin, are no strangers to LVMH, having bought two small U.S. cosmetics brands, Hard Candy and Urban Decay, from the luxury goods giant in early 2003.

LVMH, the largest luxury goods firm in the world with 50 brands ranging from champagnes to department stores, has been selling non-core businesses and focusing on its most profitable labels.

It has recently sold Hine Cognac, Pommery Champagne and Bliss cosmetics.

Lacroix is a major part of the Paris fashion scene, making exclusive haute-couture (made-to-measure) outfits to clients ranging from New York businesswomen to the Saudi Arabian royal families.

"We are buying his name," Falic said of Lacroix. "We have plans to increase the exposure of the brand and increase the volume of business."

The Falic brothers also own Duty Free Americas, which has about 90 duty free shops in airports across the United States and on the borders with Canada and Mexico.