PARIS – Luxury brand conglomerate LVMH Moët Hennessy Louis Vuitton will buy US-based jeweler Tiffany & Co in a takeover that has been valued at $16.2 billion, LVMH said in a statement on Monday.
The acquisition reinforces the position of LVMH, owner of 75 fashion, beauty and luxury brands as the biggest luxury goods company in the world.
“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,” LVMH president and CEO Bernard Arnault said in a statement.
The president of the board of directors of Tiffany, Roger N. Farah, said that the sale “provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital.”
“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 toward becoming The Next Generation Luxury Jeweler,” said Alessandro Bogliolo, CEO of Tiffany.
The jewelry and goldsmith firm was founded in New York in 1837.
The New York flagship shop shot to fame after its role in Breakfast at Tiffany’s, a movie based on a novel by the journalist and writer Truman Capote.
The opening sequence of the film featured British actor Audrey Hepburn looking sultry in front of the now-iconic jewelry store on Fifth Avenue.
The acquisition has been approved by the boards of directors of the two groups.
The transaction will be closed by mid-2020 once Tiffany shareholders approve the purchase and the relevant regulatory authorizations are obtained.
LVMH was founded in 1987 when fashion house Louis Vuitton and Moët Hennessy merged.
It has 145,247 employees and has high profile subsidiaries that include Christian Dior, Fendi, Kenzo and Bulgari.