LVMH, the French luxury group announced the completion of a $16.2 billion deal to acquire Tiffany & Co.
LVMH has officially announced that it will acquire the Tiffany & Co. The company confirmed the plan on Sunday, stating that a deal has been signed for $135 per share in cash, in a transaction valued at $16.2 billion or €14.7 billion.
Tiffany & Co is an American luxury jeweler founded by Charles Lewis Tiffany in 1837 in downtown Manhattan. Tiffany today with more the 300 outlets worldwide is leading luxury jewelry brand headquartered in New York City.
The acquisition of Tiffany will help French luxury group to expand its Watches & Jewelry division in the United States.
“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.” Said Bernard Arnault, Chairman and Chief Executive Officer of LVMH.
“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.” He added.
Roger N. Farah, Chairman of the Board of Directors of Tiffany said in a statement that “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.”
Chief Executive Officer of Tiffany, Alessandro Bogliolo said “As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”
LVMH shares price rose to 1.4% on Monday morning after the announcement of LVMH’s acquisition of Tiffany.
The acquistion has been approved by boards of directors of both companies and expected to close in the middle of 2020. The transaction is subject to Tiffany shareholders approval and regulatory approvals.