The deal — worth more than $16 billion — is said to be the biggest ever in the luxury sector.
The European group behind Louis Vuitton, Bulgari and Fendi is expected to pay $16.2 billion, or $135 per share. Jewelry, “one of the strongest performing areas of the luxury industry in 2018,” is set to see sales grow 7% this year, said CNBC, citing consultancy group Bain & Co.
“We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewelry 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. 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,” said Bernard Arnault, Chairman and Chief Executive Officer of LVMH.
For more than 180 years, Tiffany has been synonymous with elegance, innovative design and sustainability. Tiffany’s commitment to protecting the environment and respecting human rights sets it apart from industry competitors.
Founded in 1837 when Charles Lewis Tiffany opened the first store in downtown Manhattan, Today, Tiffany is the leading luxury brand originated in the U.S. with more than 300 boutiques around the world.
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 Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”
The acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the U.S. The addition of Tiffany will transform LVMH’s timepiece and jewelry division and complement LVMH’s 75 distinguished Houses.