LVMH Moët Hennessy Louis Vuitton (LVMH) is to acquire US luxury jewellery firm Tiffany & Co in a €14.7 billion or US$16.2 billion deal.
The two companies announced this morning that they have entered into a definitive agreement under which the French luxury goods powerhouse will acquire Tiffany for US$135 per share in cash, having increased its original offer.
The Tiffany acquisition will strengthen LVMH’s position in jewellery and further increase its presence in the US, the French group said, adding, “The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.”
LVMH Chairman and Chief Executive Officer Bernard Arnault commented: “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. 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.”
Roger N. Farah, Chairman of the Board of Directors of Tiffany, commented, “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.”
Tiffany Chief Executive Officer Alessandro Bogliolo 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 Jeweller. As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”
The acquisition has been approved by the boards of directors of both companies and the Tiffany Board of Directors recommends that Tiffany shareholders approve the transaction. The deal is expected to complete in the middle of 2020 and is subject to customary closing conditions, including assent from Tiffany’s shareholders and the receipt of regulatory approvals.
