Executives at Moet Hennessy Louis Vuitton (LVMH) have made a deal to buy Tiffany & Co. for $16.2 billion (£12.5 billion).
Back in October, leaders at the world's biggest high-end goods conglomerate, headed by French billionaire Bernard Arnault, announced they had approached bosses at the U.S. jewellery brand with a possible takeover bid.
But after a month of talks, representatives announced on Monday that the companies had entered into an agreement where LVMH will acquire Tiffany for $135 (£104) per share in cash, with the equity value of the transaction equating to $16.2 billion.
"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, chairman and chief executive officer of LVMH, commented. "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."
In addition to owning Louis Vuitton, LVMH is the parent company of watch and jewellery brands including Bulgari, Chaumet, Hublot, TAG Heuer, and Zenith.
Roger N. Farah, chairman of the board of directors of Tiffany, stated that the deal is expected to close in mid-2020. The transaction is subject to closing conditions, including approval from Tiffany's shareholders and the receipt of regulatory approvals.
"Following a strategic review that included a 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," he said.
Founded in 1837 by Charles Lewis Tiffany, Tiffany has since become synonymous with timeless design and the iconic Tiffany Blue boxes.
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