Moët Hennessy Louis Vuitton (LVMH) has announced it has acquired Tiffany & Co. acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately $16.2 billion.

The New York Times reported that this is the biggest deal ever in the luxury sector. 

LVMH turned the top of its website "Tiffany Blue" today to showcase the news. The screenshot above features Bernard Arnault, chairman and chief executive officer, LVMH, saying, "We are delighted to have the opportunity to welcome Tiffany & Co. to the family."

LVMH stated that the acquisition will strengthen its position in jewelry and further increase its presence in the United States. 

What does this mean for Tiffany & Co.'s fragrance business? Nothing, yet. Coty inked a fragrance licensing deal with Tiffany in 2016, and whether or not this will change in the future is uncertain.

Arnault adds, "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. 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.”

Roger N. Farah, chairman of the board of directors of Tiffany, comments, “Following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders.”

Alessandro Bogliolo, CEO, Tiffany, says, “Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”

The transaction is expected to close in the middle of 2020 and is subject to customary closing conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals.

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