The highest maker of luxury goods in the world, LVMH Moët Hennessy has bought the American jeweller known for its engagement rings and white diamond necklaces, Tiffany & Co for $16.2 billion.
The company announced that it would pay $135 a share in cash while stating that the deal would transform its watches and jewellery division, its latest addition to its 75 key brands known as “maisons” or houses.
Speaking about the acquisition as reported on BBC, Bernard Arnault, the Chairman and Chief Executive of LVMH, said, “We have 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.”
Also commenting on the deal, Alessandro Bogliolo, the Tiffany & Co, Chief Executive said, “As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”
What you should know: LVMH first approached Tiffany in late October this year with a $14.5 billion bid. However, after the review of the proposal by Tiffany’s Board of Directors, it was rejected as the amount was termed too low. The new deal values each Tiffany share at $135 in cash which is higher than the initial offer of $120 a share.
About Tiffany: Tiffany was founded in 1837 by Charles Lewis Tiffany who opened the first store in downtown Manhattan. Presently, Tiffany now has more than 300 stores around the globe. Apart from jewellery, the company sells stationery, fragrances, water bottles, personal accessories, and leather goods.
About LVMH: The luxury goods empire owned by billionaire Bernard Arnault includes brands such as Louis Vuitton, Dior and Moët & Chandon, Bulgari and so on. It has 75 brands, 156,000 employees and a network of more than 4,590 stores.