LVMH Moët Hennessy Louis Vuitton SE (LVMH), announced yesterday that it has entered “into a definitive agreement” with Tiffany & Co. under which LVMH will acquire Tiffany for approximately €14.7 billion or $16.2 billion. This translates to US$135 per share.   

“For more than 180 years, Tiffany has been synonymous with elegance, innovative design, fine craftsmanship and creative excellence,” LVMH said announcing the move. “Since 1886, when it established the eponymous diamond ring as an enduring symbol of commitment, Tiffany has stood for love. Its extraordinary diamonds are cherished for generations and its legendary jewellery designs are the ultimate reference in the global jewellery world. Even the Tiffany Blue Box is recognised worldwide as an icon of refinement and desirability.”

The legendary jewellery brand, immortalised by Hollywood (Breakfast at Tiffany’s), traces its roots to 1837 when Charles Lewis Tiffany opened the first store in downtown Manhattan. Since then, Tiffany has emerged as a leading luxury jewellery brand with more than 300 stores around the globe.

“Nature is not only the source of inspiration for Tiffany’s designers, but precious metals and natural gemstones are necessary components for the creation of its designs,” LVMH underlined. “Tiffany stood apart in the industry as an early proponent of sourcing these materials with a socially and environmentally responsible rigor. Protecting the environment and respecting human rights continue to be core business principles.”

LVMH, the leading luxury conglomerate with a bevy of prestigious brands across product groups under its umbrella, asserted that the acquisition of Tiffany “will strengthen LVMH’s position in jewellery” and further extend its presence in the United States. “The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses,” the Company noted.

Bernard Arnault, Chairman and Chief Executive Officer of LVMH, commented: “We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewellery 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.”

Roger N. Farah, Chairman of the Board of Directors of Tiffany, commented, “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.”

Alessandro Bogliolo, Chief Executive Officer of Tiffany, said: “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, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”

While LVMH’s acquisition of Tiffany has been approved by the boards of directors of both companies, Tiffany’s Board has recommended that Tiffany shareholders approve the transaction with LVMH.

The transaction is expected to close in the middle of 2020 and is subject to customary closing conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals.

Pic caption: The iconic Tiffany Blue Box

Pic courtesy: Tiffany & Co