Yesterday the world’s biggest luxury group LVMH, controlled by billionaire Bernard Arnault, announced that they had acquired heritage American jeweller Tiffany & Co. for $23.8. billion. The sale will mark the biggest luxury brand acquirement ever and adds to the groups already impressive portfolio of brands including the likes of Louis Vuitton, Bulgari and FENTY.
LVMH and Tiffany & Co. agreement was finalised at a share price of $199 cash. Acquisition negotiations began in October this year, after the initial offer of $177 per share made by Arnault was considered too low. The final sale price was almost $3 billion higher than LVMH’s initial bid.
LVMH shared in a statement that the deal is expected to go through in the middle of 2020, permitting that the luxury group receives final approval from Tiffany shareholders. The acquisition seems to have had an already positive impact on both parties, with shares of the Paris-based fashion house up 2% on Monday morning, while Tiffany shares were up 6% in premarket trading.
“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,” Arnault said.
“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. 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.”
The acquisition of Tiffany will further increase LVMH’s presence in North America and strengthen its position in the jewellery and watches sector – complimenting LVMH’s 75 distinguished Houses.
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