Last October, French luxury conglomerate LVMH made a bid to buy American jewelry company Tiffany & Co. for $14.5 billion. That initial bid, however, was rebuffed.
Earlier today, various news reports surrounding LVMH’s higher bid swirled, and now, the deal has been officially approved.
LVMH will buy Tiffany & Co. for $16.3 billion, at $135 a share, to be paid in cash.
The Bernard Arnault-led luxury conglomerate currently owns luxury juggernauts Louis Vuitton, Christian Dior, and Moët & Chandon. Brands under the ‘hard luxury’ division (jewelry and watches) include Bulgari, TAG Heuer, and Hublot.
LVMH said in a statement that “the acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States.
Arnault also 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.”
Tiffany & Co. has over 300 stores worldwide and approximately 14,000 employees. According to The Guardian, this wide reach and strong global presence were probably what drew LVMH to acquire the acclaimed jewelry brand.
“Tiffany makes sense for LVMH because of the scarcity of acquisition targets with global scale and brand appeal in jewelry, the least crowded category in the luxury sector,” said Rogerio Fujimori, an analyst at Royal Bank of Scotland.
The LVMH-Tiffany deal will close in the middle of 2020.
