French luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE (LVMH) has reached an agreement to purchase luxury jeweller Tiffany & Co. for approximately $16.2 billion, making this LVMH's most expensive luxury acquisition to date.
Image credit: Wikimedia
The luxury group agreed to $135 per share in cash for Tiffany.
The deal marks the end of Tiffany & Co.'s 182-year history as a stand-alone brand. Founded in 1837 when Charles Lewis Tiffany opened the first store in downtown Manhattan, Tiffany today boasts more than 300 stores around the globe. The retailer has, however, struggled with growth over the last several years.
The luxury jeweller will join the growing LVMH stable, which includes Louis Vuitton, Christian Dior Couture, Celine, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs and Fenty, among others.
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According to a statement, the acquisition of Tiffany will strengthen LVMH’s position in jewellery and further increase its presence in the United States. "The addition of Tiffany will transform LVMH’s Watches & Jewellery division and complement LVMH’s 75 distinguished Houses," the luxury giant states in a press release.
Bernard Arnault, chairman and chief cxecutive officer of LVMH, commented: “We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewellry world, to the LVMH family. We have immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come.”
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Alessandro Bogliolo, chief executive officer of Tiffany, said: “Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweller. As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”
The transaction is expected to close in the middle of 2020 and is subject to customary closing conditions.
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