LVMH to Acquire Tiffany & Co. for $16.2 Billion

by Katie Lee

Paris and New York City — LVMH Moët Hennessy Louis Vuitton SE (LVMH), the world’s leading luxury group, and Tiffany & Co., the global luxury jeweler, 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 or $16.2 billion. The transaction is expected to close in the middle of 2020.

For more than 180 years, Tiffany has been synonymous with elegance, innovative design, fine craftsmanship and creative excellence. Founded in 1837 when Charles Lewis Tiffany opened the first store in downtown Manhattan, Tiffany today is the leading luxury brand originated in the United States; today it has more than 300 stores around the globe. The acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States. The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.

“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,” says Bernard Arnault, chairman and chief executive officer of LVMH. “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.”

Alessandro Bogliolo, chief executive officer of Tiffany, 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 Jeweler. As part of the LVMH group, Tiffany will reach new heights.”

LVMH’s acquisition of Tiffany has been approved by the boards of directors of both companies, and the Tiffany board of directors recommends that Tiffany shareholders approve the transaction with LVMH.

Citi and J.P. Morgan are serving as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel to LVMH. Centerview Partners LLC and Goldman Sachs Co. LLC are serving as financial advisors and Sullivan & Cromwell LLP is serving as legal counsel to Tiffany.


SOURCE: LVMH, Tiffany & Co.


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