Paris-based luxury conglomerate LVMH, renowned for its diverse portfolio of luxury brands, has successfully finalized its acquisition of the iconic American jeweler, Tiffany & Co.
In an official statement, LVMH expressed its enthusiasm for the acquisition, emphasizing the transformative impact it will have on LVMH’s Watches & Jewelry division, while also complementing their existing array of 75 prestigious brands. Notably, Tiffany & Co., synonymous with elegance, innovative design, fine craftsmanship, and creative excellence, will now hold a prominent position in LVMH’s Watches and Jewelry Division, which includes other renowned names such as Bulgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred, and Hublot. This move reflects the growing significance of the jewelry market within the luxury goods sector.
The acquisition was completed at a purchase price of $15.8 billion, a slightly reduced figure from LVMH’s original offer of $16.2 billion. LVMH initially announced its intention to acquire Tiffany over a year ago, but the global impact of the COVID-19 pandemic seemingly influenced LVMH Chair and CEO Bernard Arnault to revisit the agreed-upon price. This dispute led to a legal battle initiated by Tiffany to compel the deal’s execution.
Bernard Arnault expressed his satisfaction with the acquisition, welcoming Tiffany and its dedicated workforce into the LVMH family. He reaffirmed Tiffany’s iconic status and its symbolic Blue Box that holds global reverence, pledging LVMH’s unwavering support for the brand’s future growth and innovation.
As part of the transition, LVMH introduced a new management team for Tiffany & Co. Anthony Ledru, who previously served as the head of Louis Vuitton in the US and has extensive experience at Tiffany and rival jeweler Cartier, was appointed as the CEO. Additionally, Alexandre Arnault, Bernard Arnault’s 28-year-old son, known for his role in leading LVMH’s luggage label Rimowa, assumed the position of Executive Vice President for Product and Communication at Tiffany.
Anthony Ledru expressed his delight in rejoining Tiffany, highlighting the brand’s enduring values and commitment to environmental and sourcing standards. He also expressed confidence in LVMH’s dedication to safeguarding and growing the Tiffany brand.
Tiffany & Co., known for its skilled artisans who meticulously cut diamonds and craft jewelry, reported record sales during the 2020 Christmas holiday season. Increased online sales and surging demand in China contributed to a two percent year-on-year growth in preliminary net sales for the period from November 1 to December 31. Online sales saw a remarkable 80 percent rise, while the Asia-Pacific region experienced a 20 percent sales increase, with China notably contributing a 50 percent surge in sales.
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