Connect with us

Headlines

Tiffany to Be Acquired in $16.2B Deal

The transaction is expected to close in 2020.

mm

Published

on

Luxury group LVMH Moët Hennessy Louis Vuitton SE announced that it plans to acquire Tiffany & Co. in a $16.2 billion deal.

The addition of Tiffany “will strengthen LVMH’s position in jewelry and further increase its presence in the United States,” according to a press release from LVMH.

The transaction is expected to close in the middle of 2020.

Video: 4 Conversations You Need to Have With Your Jewelry-Store Team
Jimmy Degroot

Video: 4 Conversations You Need to Have With Your Jewelry-Store Team

Video: How to Find a Good Manager for Your Jewelry Store
Jimmy Degroot

Video: How to Find a Good Manager for Your Jewelry Store

Video: Sharpen Your Bridal Jewelry Presentations
Jimmy Degroot

Video: Sharpen Your Bridal Jewelry Presentations

“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 CEO of LVMH. “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 Tiffany board of directors, said, “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.”

Advertisement

The acquisition is subject to customary closing conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals. It has been approved by the boards of directors of both companies and the Tiffany board of directors recommends that Tiffany shareholders approve the transaction with LVMH.

The deal calls for a price of $135 per share in cash. LVMH originally made an offer of $120 per share, or about $14.5 billion, according to news reports.

announced that the companies have entered into a definitive agreement whereby LVMH will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion.

Founded in 1837 when Charles Lewis Tiffany opened the first store in downtown Manhattan, Tiffany today is the leading luxury brand originated in the United States and delights discerning customers in more than 300 stores around the globe. Nature is not only the source of inspiration for Tiffany’s designers, but precious metals and natural gemstones are necessary components for the creation of its designs. Tiffany stood apart in the industry as an early proponent of sourcing these materials with a socially and environmentally responsible rigor. Protecting the environment and respecting human rights continue to be core business principles.

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.”

LVMH is known for brands including Louis Vuitton, Chaumet and TAG Heuer.

Advertisement

New York-based Tiffany run about 300 retail stores worldwide.

Alessandro Bogliolo, CEO of Tiffany, 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 Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”

 

 

 

Advertisement

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at [email protected].

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | Zadok Master Jewelers

Stick to the Program — And Watch Your Sales Grow

When Zadok Master Jewelers in Houston, Texas, decided to move to a new location (they’d been in the same one for the 45 years they’d been in business), they called Wilkerson to run a moving sale. The results, says seventh-generation jeweler Jonathan Zadok, were “off the charts” in terms of traffic and sales. Why? They took Wilkerson’s advice and stuck to the company’s marketing program, which included sign twirlers — something Jonathan Zadok had never used before. He says a number of very wealthy customers came in because of them. “They said, ‘I loved your sign twirlers and here’s my credit card for $20,000.’ There’s no way we could have done that on our own,” says Zadok. “Without Wilkerson, the sale never, ever would have come close to what it did.”

Promoted Headlines

Advertisement

Advertisement

Advertisement

Subscribe


BULLETINS

INSTORE helps you become a better jeweler
with the biggest daily news headlines and useful tips.
(Mailed 5x per week.)

Facebook

Latest Comments

Most Popular