The world’s largest luxury goods company will buy famed jeweller Tiffany and Co. for US$16.2 billion.
The announcement was made by LVMH today, five weeks after news first broke that the group had made a bid to buy US-based Tiffany.
At the time, the French company, which also owns numerous high-end brands including Louis Vuitton and Givenchy, had offered US$14.5 billion, US$1.5 billion than the final sale price. The initial offer was deemed too low, with the latest valuing Tiffany’s shares at US$135 each, compared to the previous bid valued at US$120 per share.
LVMH chairman and chief executive officer, Bernard Arnault, said Tiffany and Co. has an “unparalleled heritage and unique position in the global jewellery world” adding “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 (brand house).”
Tiffany was founded in 1837 by Charles Tiffany Lewis and now has more than 300 stores worldwide. Recognised by its distinct blue packaging, Tiffany and Co. became part of popular culture in the now iconic 1961 movie Breakfast at Tiffany’s starring the legendary Audrey Hepburn.
“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,” said a release by the Group today.
LVMH is owned by Arnault, the world’s third richest person with a net worth valued at US$100 billion according to the Bloomberg Billionaires Index.
The Group earned US$52 billion in revenue last year and boasts Christian Dior, Marc Jacobs, Fendi and pop star Rihanna’s FENTY and Fenty Beauty among its many brands.