Luxury goods group LVMH Moët Hennessy - Louis Vuitton is to buy Singapore-listed Heng Long International Ltd, one of the world's leading suppliers of crocodile leather, for SGD160.8m (US$125.6m).

The deal will ensure the supply of high quality crocodilian skins to LVMH, whose fashion and leather goods brands include Louis Vuitton, Celine, Loewe, Kenzo, Givenchy, Fendi, Donna Karan and Marc Jacobs. The French firm has also promised to invest in developing the tannery's finishing techniques.

Under the terms of the agreement, the Koh family, the founders and controlling shareholders of Heng Long, are selling their 74% stake in the business to LVMH. But they will also re-invest a substantial portion of the proceeds and, as a result, Heng Long will be owned 51% by LVMH and 49% by the Koh family.

Mr Chon Tong Koh and Mr Choon Heong Koh will remain as managing director and executive director of Heng Long respectively for at least five years.

Heng Long is one of the five top-tier tanneries of crocodilian leather in the world. It sources, tans and processes a wide range of raw crocodilian skins into crusts and high-end premium finished crocodilian leather which is used in handbags, boots and shoes, garments, belts and wallets.