Luxury giant LVMH to buy Tiffany for $16bn
LVMH, Moët Hennessy Louis Vuitton, the world’s largest luxury goods company, said on Monday that it would buy the jeweller Tiffany & Company for $16.2 billion.
The agreed deal, the largest ever in the sector, would give LVMH a bigger presence in the US. It also would cement the status of Bernard Arnault, its chairman and chief executive, as the most acquisitive deal maker in the luxury business.
“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,” Arnault, the chairman and chief executive of LVMH, said in a statement.
The acquisition would add a prominent American name to the LVMH stable of brands, which includes Dior, Givenchy, Fendi, Dom Pérignon and Bulgari. The deal would help propel the French luxury company beyond traditional soft luxury goods like clothing and handbags and into what is known as the hard luxury sector, which includes watches and jewellery.
LVMH, which already holds dominant positions in the worlds of fashion, leather goods, wines and spirits, has gone on a spending spree in recent years. It has picked up brands like Belmond hospitality and Rimowa luggage. The deal with Tiffany marks its second major American investment this year after it created a new luxury house, Fenty, with Rihanna.
The company had already ventured into jewellery in 2011 by buying Bulgari, which at the time was headed by Alessandro Bogliolo, now Tiffany’s chief executive. Bogliolo said the transaction would “provide further support, resources and momentum” in its effort to “drive sustainable long-term growth.”