News
LVMH confirms deal to buy Tiffany for $16.2 billion in its largest acquisition ever
November 25, 2019
LVMH confirmed Monday that it would acquire the US jewelry chain Tiffany & Co. for about $16.2 billion.
This is LVMH's most expensive luxury acquisition ever.
The news comes after several weeks of speculation over whether Tiffany would accept a deal after LVMH first made an offer of $14.5 billion for the retailer.
This is LVMH's most expensive luxury acquisition ever.
The news comes after several weeks of speculation over whether Tiffany would accept a deal after LVMH first made an offer of $14.5 billion for the retailer.
"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," Bernard Arnault, the CEO of LVMH, said in a statement to the press. He continued: "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."
LVMH's portfolio consists of 75 brands including Christian Dior, Louis Vuitton, and Hennessy.
This new acquisition gives the Europe-headquartered LVMH greater exposure to the US market (44% of Tiffany's sales are made in the US, Canada, and Latin America) and should help it to become a bigger player in fine jewelry, an area where analysts say it is lacking.
Moreover, the Tiffany name is well-recognized, it's a global player offering very high quality diamonds and jewelry (and, crucially, one of the top jewelry brands in China), and it has an accessible price point, which all help LVMH to reach a wider audience.
LVMH's portfolio consists of 75 brands including Christian Dior, Louis Vuitton, and Hennessy.
This new acquisition gives the Europe-headquartered LVMH greater exposure to the US market (44% of Tiffany's sales are made in the US, Canada, and Latin America) and should help it to become a bigger player in fine jewelry, an area where analysts say it is lacking.
Moreover, the Tiffany name is well-recognized, it's a global player offering very high quality diamonds and jewelry (and, crucially, one of the top jewelry brands in China), and it has an accessible price point, which all help LVMH to reach a wider audience.
