LVMH had been flirting with an acquisition and upped its bid to buy the upmarket US jewellery firm having lodged an unsuccessful $14.5bn ($120 per share) attempt last month.
Both parties have entered into a definitive agreement in which LVMH is to acquire Tiffany for $135 per share in cash.
MID-2020 ACQUISITION CLOSE
The transaction is expected to finalise in the middle of next year and is subject to conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals.
Upon closing, it will significantly bolster LVMH’s Watches & Jewelry division, which includes hallmark names such as Bulgari, Tag Heuer, Dior Watches, Zenith, Fred and Hublot.
Alessandro Bogliolo, Chief Executive Officer, Tiffany & Co. 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.”
Bernard Arnault, Chairman and Chief Executive Officer, LVMH 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.”
Since being founded in 1837 when Charles Lewis Tiffany founded the company in New York, Tiffany & Co. has grown into a veritable luxury force, employing in excess of 14,000 employees and operating more than 300 retail stores globally.
It is famed for its fine and elegant craftsmanship, producing the likes of necklaces, pendants and rings using precious metals and gemstones.
Meanwhile, its iconic blue box has become a mainstay of haute jewellery packaging design.