LVMH acquires Tiffany for 16 billion dollars

As predicted by the media sources earlier, luxury conglomerate LVMH Moët Hennessy Louis Vuitton SE (LVMH) is acquiring luxury jeweller Tiffany for 135 cents per share in cash, in a transaction with an equity value of approximately 14.7 billion euros or 16.2 billion dollars.

Commenting on the development, Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said in a statement: “We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewellery world, to the LVMH family. We have an 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.”

LVMH acquires Tiffany

Founded in 1837 when Charles Lewis Tiffany opened the first store in downtown Manhattan, Tiffany is the leading luxury brand originated in the United States having a network of over 300 stores around the globe. Tiffany is known as its creations and designs having precious metals and natural gemstones. LVMH said, the acquisition of Tiffany will strengthen the group’s position in jewellery and further increase its presence in the United States. The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 luxury Houses.

“Following a strategic review that included a thoughtful internal process and expert external advice, the board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders,” added Roger N. Farah, Chairman of the Board of Directors of Tiffany.

LVMH’s acquisition of Tiffany has been approved by the boards of directors and the transaction is expected to close in the middle of 2020.

Further commenting on the deal, 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. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”

Picture:Facebook/Tiffany & Co.