The luxury giant LVMH has obtained the agreement of the shareholders of Tiffany for the acquisition of the American jeweler, for a sum amounting to 16.2 billion dollars.
By Luxus Plus
The shareholders of Tiffany gave their approval Tuesday to the acquisition of the American jeweler by the luxury giant LVMH, for the record sum of 16.2 billion dollars, according to a press release from the group of Bernard Arnault.
“This approval is a significant step in the process of acquiring Tiffany”, which “enjoys a unique heritage and positioning in the world of fine jewelry, a symbol of love worldwide” , hailed the CEO of the world’s number one luxury.
Bernard Arnault underlined that Tiffany “would exceptionally complete our unique portfolio of houses”, and that the operation would allow the jeweler “to reach new heights”.
Meeting in an extraordinary meeting Tuesday, the shareholders of the New York house “voted by a very large majority in favor” of the acquisition transaction, according to the press release from the French group.
He recalls that the agreement announced on November 25 “relates to the acquisition by LVMH of Tiffany shares at a price of $ 135 per share payable in cash”, an operation which “values the international house of fine jewelry Tiffany at approximately 14.7 billion euros, or 16.2 billion dollars “.
LVMH stresses that the completion of the transaction is still scheduled for mid-2020, “subject to obtaining regulatory approvals and other customary conditions“.
14,000 employees and 320 stores
In its last fiscal year, Tiffany achieved sales of $ 4.4 billion, up 6.5% year-on-year. Its growth was, however, held back by the strong dollar and lower spending by tourists to the United States.
The jeweler employs more than 14,000 people, and relies on a network of more than 320 stores, which he manages all directly, bypassing multi-brand retailers.
Diamonds are its key activity, more than half of the jewelry sold being set with at least one of these stones. Founded in 1837, the New York house has been seeking for years to modernize its image and attract a younger clientele.
For LVMH, the acquisition of Tiffany will strengthen its presence in the United States, currently the second largest market for the luxury goods giant: 24% of its sales were made there last year, behind Asia excluding Japan (30 %).
Bernard Arnault’s group will also be able to add a prestigious jeweler to its portfolio which already includes Bulgari (bought in 2011) and Chaumet (acquired in 1999), and thus better compete in high-end jewelry – the only luxury sector where it is not number one – with its Swiss competitor Richemont, owner of the Cartier and Van Cleef & Arpels labels.
In 2019, the Watches and Jewelry division of LVMH achieved 4.4 billion euros in sales, and had a total of 457 stores worldwide.
For all of its activities, the world number one in luxury experienced a record year, totaling a turnover of 53.7 billion euros and a net profit of 7.17 billion.
Read also: LVMH: a record 50 billion euros in sales in 2019
