Ending weeks of speculation, French luxury group LVMH MoÃ«t Hennessy Louis Vuitton SE (LVMH) has acquired luxury jewelry chain Tiffany & Co. After an initial $120 perc share offer, LVMH will pay $135 per share in cash, in a deal totaling $16.2 billion.
The acquisition has been approved by the boards of directors of both companies and the Tiffany Board of Directors recommends that Tiffany shareholders approve the transaction.
Roger N. Farah, chairman of the board of directors of Tiffany said the board had concluded that the move "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."
Alessandro Bogliolo, Tiffany CEO said the company has been focused on executing on its 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."
LVMH chairman and CEO Bernard Arnault said his company intends to develop Tiffany with the same dedication and commitment it has applied to each of its houses.
LVMH's Watches and Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot.