LVMH Acquires Tiffany And Co. In $16.2 Billion deal

LVMH Tiffany

LVMH the world’s leading luxury group and Tiffany & Co. the iconic global luxury jeweler, earlier this week announced that the companies have entered into a definitive agreement whereby LVMH will acquire Tiffany for a whopping $16.2 billion.

The 182-year-old luxury house will join the LVMH Moet Hennessy Louis Vuitton family which houses 75 high-end brands such as Celine, Christian Dior, Emilio Pucci, Fendi, FENTY, Givenchy, Kenzo, as well as the company’s jewelry division, which includes Bvlgari, Chaumet, Hublot and more.

Tiffany and Co. was founded in 1837 by Charles Lewis Tiffany and became famous for its eponymous diamond rings and robin’s egg blue boxes. It has more than 300 stores worldwide and about $4.4 billion in annual revenue.

‘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,’ Bernard Arnault, Chairman and Chief Executive Officer of LVMH said in a statement. ‘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.’

‘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,’ Alessandro Bogliolo, Chief Executive Officer of Tiffany added.

Daryl de Jori, industry analyst and Co-Ceo of IFDAQ, an AI-driven research and consulting firm that provides Key Performance Indicators to the industry said that Tiffany & Co. has made an indelible mark under the leadership of Alessandro Bogliolo. ‘The brand has gained in reputation, prestige, marketing quality and effective market value according to our performance data. The industry should focus on KPIs that go beyond financial numbers, which are often impacted by a volatile segment development,’ de Jori said.

According to the IFDAQ considering the brand’s market and segment performance in its system, which has doubled over the past 5 years, the new home at LVMH could be an important trigger in boosting the brand’s revenue performance. ‘Almost 200 years after its establishment, Tiffany & Co. joins the LVMH family and adds some more value to the world’s strongest fashion & luxury ecosystem, Europe, by doubling its market share in the hard luxury sector,’ added Iva Mirbach, Head of Research & Innovation at IFDAQ.

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. The deal is expected to close in the middle of 2020 and has been approved by the boards of directors of both companies.

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