After LVMH had to upgrade its bid for American jeweller Tiffany & Co twice, both parties have reached an agreement. The French luxury group is taking control of the jeweller at a cost of 14.7 billion euros.
Three times a charm
At the end of October, the first takeover rumours surfaced: originally, LVMH offered 120 dollars per share, but that offer has been increased twice in recent weeks to reach 135 dollars (122 euros) per share or a total acquisition price of 16.2 billion dollars (14.7 billion euros). The deal should be completed by mid 2020, Belgian newspaper De Tijd writes.
LVMH, the owner of well-known brands such as Dior, Louis Vuitton and Veuve Clicquot, has long been exploring opportunities to expand its activities in the American market. Tiffany & Co fits perfectly into that picture. In addition, LVMH is able to strengthen its jewellery business through the acquisition; since 2011, the Italian jeweller Bulgari has been the big name of that branch.
Tiffany & Co was founded in 1837 by Charles Lewis Tiffany. In 1979, cosmetics company Avon Products bought the jewellery chain, but five years ago the company ended up in the hands of investors. Tiffany & Co employs 14,000 people and has an annual turnover of four billion euros.