LVMH Buys Tiffany & Co in $16 Billion Deal

by SHOWstudio on 27 November 2019

This week sees one of LVMH's largest ever acquisitions.

This week sees one of LVMH's largest ever acquisitions.

This week saw LVMH buy luxury jewellers Tiffany & Co in a deal worth $16.2 billion. The acquisition, which comes after reports of the deal leaked in October, looks to revitalise Tiffany's flagging sales and to expand LVMH's watches and jewellery division. LVMH owns Celine, Louis Vuitton, Rihanna's Fenty and beauty company Sephora and is currently the second most valuable company in Europe with a market capitalisation said to be worth 'more than €200 billion' according to The Business of Fashion.

Image courtesy of Tiffany

The deal was announced Monday 25th and the $135 a share all-cash acquisition was one of LVMH's largest ever takeovers after previously purchasing Dior for $13 billion in 2017. American heritage brand Tiffany & Co, one of the few independent global jewellery houses remaining, have been hesitant about being bought out however economic uncertainty following decreased sales in the first half of 2019 saw them accept the offer.

Image courtesy of Tiffany

LVMH is hoping to re-energise and revitalise the Tiffany's brand identity leading to boosted revenues. For LVMH, the deal also helps the luxury conglomerate expand their American markets and adds more jewellery and watch brands to their portfolio. The sale, expected to close in mid-2020, is still pending approval from Tiffany’s shareholders.

Image courtesy of Tiffany