The owner of Louis Vuitton (EPA:MC) confirmed on Monday that it will acquire Tiffany (NYSE:TIF) in a $16.2 billion deal.
The jewellery maker, whose little blue boxes have become iconic, was founded in 1837 after Charles Lewis Tiffany opened the first store in downtown Manhattan.
Luxury group LVMH said that its acquisition of Tiffany will strengthen its position in the world of jewellery, whilst also increasing its presence across the pond.
LVMH owns brands such as Christian Dior, Fendi and Moët & Chandon.
Bernard Arnault, Chairman and Chief Executive Officer of LVMH, said that the business has “immense respect and admiration” for Tiffany.
“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,” Bernard Arnault continued.
Meanwhile, Alessandro Bogliolo, Chief Executive Officer of Tiffany, also commented: “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, capitalising on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”
Roger N. Farah, Chairman of the Board of Directors of Tiffany, added that “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.”
Earlier this year in June, the New York jewellery company said that first quarter sales had declined as lower tourist spending hit its profits.
Shares in LVMH Moët Hennessy Louis Vuitton SE (EPA:MC) were up on Monday, trading at +1.84% as of 09:44 CET.
