Louis Vuitton Owner Adds Tiffany & Co. to Luxury Portfolio for $16.2B
LVMH Moët Hennessy – Louis Vuitton SE is no stranger to acquisitions, but the recent purchase of Tiffany & Co. comes with the most substantial price tag to date. At $135 per share, the total purchase price comes in at a little over $16.2 billion. LVMH is very familiar with owning and operating well-known luxury brands with almost eighty under their umbrella already, including Fendi, Givenchy, Dom Pérignon, Marc Jacobs, and Christian Dior. Whether this is a testament to strength in numbers or a risky game of monopoly, Tiffany & Co. seems to be a good match for LVMH with a hundred-year history that attests to its quality and authenticity.
LVMH is a luxury conglomerate with French origins and holds its place as the largest luxury group in the world. Currently operated by Bernard Arnault, the company is working towards a stronger position in North America, and Tiffany & Co.’s seventy-five retail outlets in the U.S. alone should be able to help with that. Additionally, Arnault and LVMH hope that the acquisition will support them in establishing a stronger involvement in the jewelry industry. Tiffany & Co. has been around since the early nineteenth century and is synonymous with status and luxury. It was also popularized by the entertainment industry with such films as Breakfast at Tiffany’s and songs like “Hotel California” by the Eagles.
While LVMH obviously stands to benefit, Tiffany & Co. also has the opportunity to grow as a result of the acquisition. Since its original formation, LVMH has proven successful in acquiring, establishing, and growing luxury brands for several decades. With so much global reach, LVMH should have no problem improving on some of the struggles Tiffany & Co. has run into with changing shopper demographics and behavior. For now, the merger is still pending but is expected to be finalized by the middle of 2020. Until then, jewelry lovers will have to wait to see whether LVMH can help Tiffany & Co. sparkle once more.
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