Louis Vuitton, Dior and Moet owner LVMH snaps up high-end American jeweler Tiffany in $16.2billion deal
- LVMH announced its deal to purchase the Manhattan-based jeweler on Monday
- The $135 per share offer is an improvement on the $120 originally on the table
- French firm LVMH is led by Europe’s richest man Bernard Arnault
Louis Vuitton owner LVMH has reached a $16.2billion deal to buy high-end American jeweler Tiffany & Co.
Tiffany, worn by celebrities such as Lady Gaga, managed to squeeze even more money out of LVMH since the luxury goods group first declared its interest last month.
The $135 per share offer represents a significant improvement on the $120 originally put on the table by LVMH in October.
High-end jeweller Tiffany & Co, renowned for its turquoise boxes, is worn by celebrities such as Lady Gaga
The French firm is led by Europe’s richest man Bernard Arnault.
Both companies’ boards have approved the deal and hope to finalize it in 2020, subject to the approval of regulators and Tiffany shareholders.
The 180-year old Tiffany, renowned for its turquoise boxes, was founded in the US in 1837 by Charles Lewis Tiffany. It has 300 boutiques around the world.
The deal will be one of the biggest in Arnault’s career and will add another big-name brand to LVMH’s stable, which already includes fashion house Dior and Moet & Chandon champagne.
The purchase will give LVMH a much broader foothold in the United States and broaden its jewelery offering.
It comes as the luxury sector has been wrestling with changing habits of shoppers, who are increasingly buying online.
Luxury goods companies are also facing fears of an economic slowdown in China, a key area of business, while they are already dealing with less international tourism in the US.
The strong dollar has also been unhelpful as it makes American luxury goods like Tiffany jewelry more expensive for consumers outside the US.