LVMH gets some serious bling after it agrees to buy Tiffany for $16.2 billion
Tiffany is officially under the LVMH umbrella. The negatiations between the two have been on since October this year, and LVMH coughed up more than $16 billion to buy the famous New York jeweller.
The two companies announced on Monday that the French luxury group will pay $135 per share.
This move doesn't really come as a surprise as jewellery is one of the strongest-performing segments in luxury today and LVMH is keen to have a slice of the pie.
“We expect to bring Tiffany time and capital, which are two things that are not too easy to get when you report quarterly to the stock market,” LVMH finance chief Jean-Jacques Guiony told CNBC, after the deal was announced.
However, their report does add that LVMH’s plans for Tiffany have three main parts: Increasing the brand’s value, improving its retail network and expanding its product offerings.
In a statement, Tiffany chairman Roger N. Farah said the deal would give the company "an exciting path forward with a group that appreciates and will invest in Tiffany's unique assets and strong human capital."
Tiffany & Co. was founded back in 1837 by Charles Lewis Tiffany and John B. Young as just a "stationary and fancy goods emporium." Charles Tiffany later rebranded the company to focus on jewellery in 1853.
The deal is expected to close in the middle of 2020 if approved by Tiffany shareholders.