LVMH Moët Hennessy Louis Vuitton has secured a deal to buy Tiffany & Co. for $16.2 billion, strengthening its hold on the jewelry sector and consolidating its position as the world’s biggest luxury group. In a statement, the firm pledged to invest in the American jeweler.
“We have 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,” said LVMH chairman and CEO Bernard Arnault, Europe’s wealthiest person.
“Following a strategic review that included the 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,” said Roger N. Farah, chairman of Tiffany’s board of directors.
“As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values,” said Alessandro Bogliolo, CEO of Tiffany.
LVMH initially bid $120 per share for the fabled American jeweler in October, kicking off weeks of haggling before the parties settled on $135.
It’s increasingly a case of survival of the fittest in the luxury sector, with the rise of digital commerce calling for steep investments in infrastructure and technology.
This story was reported by WWD and originally appeared on WWD.com.