Paris, nov 26 2019 – (LVMHF) LVMH 448,00 +9,50 +2,17% – Giant French luxury group LVMH (Louis Vuitton Moet Hennessy) is buying American jeweler Tiffany in a $16.2 billion cash deal. The original offer at $120 per share made in October has been increased to $135 and the transaction should be completed in mid 2020. Until now, LVMH was well known for its apparel, accessories and alcohol subsidiaries (Dior, Givenchy, Fendi, Louis Vuitton, Moet and Chandon, Dom Perignon…) but it was considered weak in the hard luxury sector. Bulgari was the only real jewel of the crown.
Tiffany today : 321 stores in 20 countries, Tiffany has 14,200 employees and last year posted $ 4.4 billion in sales for an operating profit of $ 1 billion (22.9% margin). The America zone represents 44% of its sales, and Japan 15% alone.