Luxury group LVMH is buying Tiffany & Co for more than $16bn (£12.5bn).
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 (£11.41bn) or $16.2 billion (12.5bn).
Tiffany rebuffed LVMH’s initial advance made just five weeks ago, arguing it significantly undervalued the company, but now the two firms have come to an agreement not a far cry from the original offer on the table.
The acquisition of Tiffany is LVMH’s biggest deal to date and will strengthen its position in the jewellery and watch market, alongside increasing its presence in the United States.
The addition of the world-renowned brand will transform LVMH’s Watches & Jewellery division and complement LVMH’s 75 distinguished Houses.
Chairman and chief executive officer of LVMH, Bernard Arnault, remarks: “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. 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.”
Tiffany & Co chief executive officer, Alessandro Bogliolo, adds: “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 Jeweller.
“As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”