French luxury conglomerate LVMH has acquired American jeweler Tiffany & Co. for $16.2 billion, or $135 per share in cash – marking the most expensive acquisition for LVMH.
A deal between the two brands has been expected since October when LVMH reached out to Tiffany with an unsolicited offer to the tune of $14.5 billion.
"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," says Bernard Arnault, chairman and chief executive officer, LVMH. "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."
LVMH is the world’s biggest luxury group, home to 75 different brands including Christian Dior, Bulgari, Louis Vuitton, Celine and Givenchy.
The deal will bolster LVMH's jewelry and watch lineup and boost the French company's presence in the United States, which accounts for about a quarter of its revenue.
The acquisition is one of the largest in the career od LVMH chief executive officer Bernard Arnault, Europe’s richest man, and in the history of the luxury sector.
According to LVMH, the transaction will likely not be finalized until mid-2020, though it has been approved by the boards of directors of both companies.