French luxury group Louis Vuitton (LVMH) has agreed to buy Tiffany & Co for more than $US16.2 billion described as the largest luxury-goods deal ever.
The deal is set to be closed in the middle of 2020 raises the French conglomerate’s profile in jewellery and giving it access to a broader market share.
LVMH said in a statement Monday it will take over the 182-year old Tiffany and its 300 boutiques worldwide at USD 135 a share.
Citigroup and JPMorgan Chase gave LVMH financial advice, while Tiffany hired Goldman Sachs Group Inc. LVMH’s legal counsel was Skadden, Arps, Slate, Meagher & Flom, while Tiffany’s was Sullivan & Cromwell.
LVMH has 75 brands and a network of more than 4,590 stores.Other brands include Kenzo, Tag Heuer, Dom Pérignon, Moet & Chandon and Christian Dior.
According to consulting firm Bain & Co. Jewelry, the global market for personal luxury goods is still vibrant, recording a high of USD 286.53 in 2018 — a 6 percent increase from the year before.
LVMH, led by billionaire Bernard Arnault, says the deal will strengthen its position in high-end jewellery and in the US market.
“We are delighted to have the opportunity to welcome Tiffany, a company with an unparallelled heritage and unique position in the global jewelry world, to the LVMH family,” said the group’s chief executive, Bernard Arnault in a statement.
