French luxury giant LVMH has officially reached a deal to buy American jeweller Tiffany & Co. for $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 jewelry world, to the LVMH family. 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,” said Bernard Arnault, CEO of LVMH, in a statement to the press.
Tiffany & Co., which was founded in New York in 1837 and is known for its trademark duck egg blue boxes, currently has 300 boutiques worldwide and says the deal will ensure the company’s long-term sustainability. The boards of both LVMH and Tiffany approved the deal on Monday morning and the transaction is expected to close towards the middle of 2020, subject to approval from Tiffany’s shareholders and regulatory approvals.
LVMH has built up a large portfolio of luxury brands across six different retail sectors and currently has about $50 billion in annual revenue from brands including Christian Dior, Fendi, Givenchy, Moët & Chandon, Bulgari, Dom Perignon, and Louis Vuitton.