Multibillion-dollar luxury brands owner LVMH has reached a deal to acquire Tiffany & Co for .5 billion. Sources indicate that the luxury brand owner has finally gained the acceptance of this present deal for acquisition after both boards have approved it.LVMH is known globally for ownership of some of the world’s most luxurious brands which include Louis Vuitton, Christian Dior, and Moët & Chandon among 75 others commonly referred to as the “Maisons” or houses. LVMH has further indicated that the acquisition will improve its watches division which also houses well-known brands Bulgari, TAG Heuer, and Hublot.Tiffany & Co. has easily been described by many to be America’s most famous jewelers and has been in business for more than a century (the first Tifanny store was opened in 1837).
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Multibillion-dollar luxury brands owner LVMH has reached a deal to acquire Tiffany & Co for $16.5 billion. Sources indicate that the luxury brand owner has finally gained the acceptance of this present deal for acquisition after both boards have approved it.
LVMH is known globally for ownership of some of the world’s most luxurious brands which include Louis Vuitton, Christian Dior, and Moët & Chandon among 75 others commonly referred to as the “Maisons” or houses. LVMH has further indicated that the acquisition will improve its watches division which also houses well-known brands Bulgari, TAG Heuer, and Hublot.
Tiffany & Co. has easily been described by many to be America’s most famous jewelers and has been in business for more than a century (the first Tifanny store was opened in 1837). The jeweler offers some of the world’s most exquisite offerings in terms of jewelry (engagement rings alone are known to range from $2,000 to $50,000). Tiffany also has a store network of more than 300 stores globally and has a human resource capacity of over 14,000 people as well.
This deal happens to be the most expensive acquisition so far in the 32 years that Bernard Arnault who also happens to be Europe’s richest man and the biggest shareholder in the luxury brands group. Sources further indicate that Arnault has said in a statement:
“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,” continued he.
In a shift in strategy for luxury brands, it seems like LVMH wants to be the owner of the top brands in everything that involves luxury merchandise as the acquisition puts it in a favorable position to lead in both the luxury watch sector and the jewelry sectors as well. This indicates that the acquisition will create a bigger market spread for LVMH as it will seek to use the deal to be able to gain vast market share against competitors in these niche fields.
While this isn’t the first time that LVMH had approached Tiffany for a potential acquisition (LVMH had approached Tiffany in October with a $14.5 billion offer but it was deemed as too small at the time), the new offer was accepted by Tiffany’s board and has been seen as a great match as well. Tifanny’s CEO has also indicated this when he said:
“As part of the LVMH group, Tiffany will reach new heights, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”
LVMH has indicated that it will complete the acquisition base on hard cash with the acquisition going for about $135 per share. It is expected that the deal will be completed by next year.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.