Italian luxury brand Loro Piana is to sell a majority stake in the business to Moët Hennessy Louis Vuitton LVMH.

The family-owned business will offload an 80% stake in the brand for EUR2bn (US$2.6bn) to LVMH. The Loro Piana family will keep the remaining 20% interest.

The company uses some of the finest materials in the world such as baby cashmere. It is also a specialist in Vicuna, a species which Loro Piana has made a contribution to saving from extinction.

"Loro Piana is an exceptionally rare Maison,rare in the unique quality and craftsmanship in its products, not least in cashmere and fine textiles, but also in the unbroken heritage and careful family husbandry over six generations," said LVMH chairman and CEO Bernard Arnault.

"I am very pleased that Sergio and Pier Luigi Loro Piana believe that our group is best able to ensure the future of the house of Loro Piana. Indeed we share the same values: family and craftsmanship allied to the tireless pursuit of quality, and I am convinced that our group will prove a good home in realising the significant future potential of Loro Piana."