What We Know:
- French luxury giant Louis Vuitton also known as LVMH has reached a $16.2 billion, or $135 a share, deal to buy American jeweler Tiffany & Co. The boards of both LVMH and Tiffany & Co. approved the deal on Sunday, November 24, 2019, and the transaction is expected to close in the middle of 2020, subject to approval from Tiffany’s shareholders and regulatory approvals.
- In the first half of 2019, worldwide net sales at Tiffany & Co. decreased 3 percent to $2.1 billion. The American jeweler has been facing weak demand at home and abroad. It’s been updating its store experience, and recently hired former Barneys chief executive Daniella Vitale to reposition its brand identity.
- CEO of LVMH, Bernaud Arnault said that the company intended “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.”
- Citi and J.P. Morgan served as financial advisors to LVMH, while Skadden, Arps, Slate, Meagher & Flom served as legal counsel. Centerview Partners and Goldman Sachs served as financial advisors to Tiffany & Co., while Sullivan & Cromwell served as legal counsel.
LVMH shares were trading 1.4% higher following the announcement.