That’s more than the luxury conglomerate paid to acquire Dior in 2017.
The conglomerate, which owns Louis Vuitton, Celine and Givenchy, sealed the deal with Tiffany to the tune of $16.2 billion, or $135 per share in cash, according to a press release. This makes Tiffany one of LVMH’s most expensive acquisitions ever, costing more than the purchase of Christian Dior’s haute couture business in 2017.
According to a release by LVMH, Tiffany’s appeal lies in its status as “the leading luxury brand originated in the United States.”
It’s also worth noting that the conglomerate describes its new acquisition as “an early proponent of sourcing… materials with a socially and environmentally responsible rigor.” Considering that LVMH has been in a bit of an arms race with its rival Kering to be seen as the most sustainability-minded player in luxury, Tiffany’s reputation in this arena certainly didn’t hurt prospects, either.
From the Tiffany side of things, the purchase could provide the investment needed to boost the brand’s profile — which despite a strong legacy, has struggled to attract new Gen Z and millennial consumers.
“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,” said LVMH CEO and chairman Bernard Arnault. “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.”
Though already approved by the boards of directors of both companies, the transaction will likely not be finalized until the middle of 2020, according to LVMH.