French luxury group LVMH said Tuesday it had acquired a majority percent stake in German premium luggage manufacturer RIMOWA for 640 million euros ($716 million).

The Cologne-based company, known for its lightweight aluminium suitcases, will continue to be run by Dieter Morszeck, the grandson of the RIMOWA's founder, who will also retain an equity stake.

"We share with Dieter Morszeck the same passion for innovation and a common desire to offer very high-quality products derived from a European tradition of craftsmanship," LVMH's chief executive Bernard Arnault said in a statement.

Arnault's son Alexandre will join RIMOWA as co-CEO after the deal for the 80 percent stake closes, which is expected to happen by January.

RIMOWA employs 3,000 people and distributes its products in 65 countries through nearly 150 stores and partners.

The company has sought to remain a pioneer in the luggage industry, developing a waterproof case and the use of lightweight polycarbonate.

Its latest innovation is including a small screen that displays the luggage tag, facilitating check-in via a special application.