GradingMay 26, 2023
State of the Diamond Industry: AI and the Future of Diamond GradingGemologists have long used machines in diamond grading but technology has made it possible for them to “learn” how to do it on their own.
MajorsNov 25, 2019
LVMH, Tiffany & Co. Make It Official
The French luxury titan acquired the iconic American jeweler in a $16.2 billion deal.
The Tiffany & Co. flagship store on Fifth Avenue, set to undergo renovations after the holidays. The jeweler was acquired by luxury conglomerate LVMH in a deal valued at $16.2 billion.
Paris—LVMH Moët Hennessy Louis Vuitton scooped up Tiffany & Co. over the weekend in a deal valued at $16.2 billion, the luxury titan announced Monday.
The acquisition brings the American jeweler under LVMH’s umbrella, adding to stable of high-powered brands that already includes Bulgari, TAG Heuer and Hublot.
LVMH expects the addition of Tiffany to strengthen its position in the jewelry market and bolster its presence in the United States, the company said in a press release about the acquisition.
Rumors of a potential deal began rumbling last month, prompting Tiffany to confirm it had received an unsolicited bid for $120 per share, valuing the company at $14.5 billion.
Tiffany reportedly entered preliminary discussions with LVMH and asked the company to up the bid, which it raised to $130 per share.
The final deal was for $135 per share, or $16.2 billion, one of the largest transactions in LVMH’s history.
Founded in 1837 by Charles Lewis Tiffany, the first Tiffany store opened in downtown Manhattan. The luxury brand slowly built an empire, expanding to more than 300 stores across the globe.
LVMH CEO Bernard Arnault described the retailer as having “an unparalleled heritage and unique position in the global jewelry world.”
Flavio Cereda, an equity analyst at Jeffries, stated in a note prior to the deal announcement that Tiffany’s “brand equity and the strength of the image of its iconic 1837 Blue Box are more valuable than the current financials suggest.”
Cereda said LVMH can leverage these to target the Asian millennial market, which would mean a “rethinking of the current product mix and its U.S. footprint, in our view.”
Tiffany CEO Alessandro Bogliolo noted the company has been striving for “sustainable, long-term growth” and said the acquisition will “provide further support, resources and momentum for those priorities as we evolve toward becoming the next generation luxury jeweler.”
The boards of directors of both companies have approved the transaction. Tiffany’s board recommended its shareholders give it the green light as well.
The deal is expected to close mid-2020 and is subject to approval from Tiffany’s shareholders, regulatory approval, and other customary closing conditions.
Citi and J.P. Morgan serve as financial advisors to LVMH while New York-based law firm Skadden, Arps, Slate, Meagher & Flom serves as legal counsel.
Centerview Partners and Goldman Sachs are Tiffany’s financial advisors and New York-based law firm Sullivan & Cromwell serves as legal counsel.
More on Majors
The Latest
Recorded WebinarsMay 26, 2023
Watch: Diamond Cut Quality: The Final Frontier Part 2Supplier Spotlight Sponsored by IGI
Recorded WebinarsMay 26, 2023
Natural and Lab-Grown Diamonds: What It’s Like to Sell Both Watch retailers Jeffery Bolling and Bobby Bengivengo discuss employee training, customer education and the sticky subject of future value.
Brought to you by
The Next Step for GIA Diamond ReportsThe most trusted diamond report, available in print or the GIA App.
FinancialsMay 26, 2023
Movado Sales Slip in Q1 Amid Inflation Woes, Tough CompsThe company has plans to revamp the Movado brand and offer less expensive watches this year.
Weekly QuizMay 25, 2023
This Week’s QuizTest your jewelry news knowledge with this short test.
AuctionsMay 26, 2023
Piece of the Week: A Bulgari Sapphire and Diamond NecklaceSet with a 118-carat unheated Sri Lankan sapphire, it just sold for $3.4 million at Phillips jewelry auction in Hong Kong.
Supplier BulletinMay 25, 2023
RAE Fine Jewelry Collection Debuting at JCK Luxury 2023Sponsored by Noam Carver
Brought to you by
Beyond Borders: Crucial Factors in Colored Stone Origin DeterminationNavigate origin determination with Continuing Education seminars offered by the GIA Alumni Collective™.
TechnologyMay 25, 2023
State of Retail: Why Jewelers Need to Invest in Cybersecurity NowAs cybercrime incidents threaten the industry, jewelers need to know what they’re up against and the best ways to protect their businesses.
IndependentsMay 25, 2023
Louis Anthony Jewelers Is Remodeling and ExpandingThe Pittsburgh jeweler is redoing the lighting and showcases, and adding a full hospitality bar as well as new shop-in-shops.
SourcingMay 25, 2023
David Yurman Unveils Quartz Exhibition at AMNH The Yurman Family Crystalline Pass is inside the museum’s brand-new Richard Gilder Center.
Events & AwardsMay 24, 2023
New To-Dos in Las Vegas During Jewelry Market Week 2023The Strip is full of new restaurant and entertainment offerings.
TrendsMay 24, 2023
State of Design: The Jewelry Design Trends to Know NowNational Jeweler’s senior editor covering fashion, trends, and design highlights the latest looks in the market.
EditorsMay 24, 2023
How Jewelers Can Make the Most of ChatGPTFrom what ChatGPT is to how to use it, this is the explainer tailored to jewelers.
AuctionsMay 23, 2023
Christie’s to Auction 127-Carat ‘Light of Peace’ DiamondThe D-color, internally flawless, Type IIa stone will be offered without reserve.
ColumnistsMay 23, 2023
Squirrel Spotting: The Case of the Pricey Repair When it comes to pricing jewelry repairs, you should start by asking a simple question about the piece at hand, Peter Smith writes.
IndependentsMay 23, 2023
Pat Henneberry Joins VeerThe industry veteran will serve as the diamond jewelry supplier’s head of business development.
MajorsMay 23, 2023
New Approach School for Jewelers Announces Gemvision PartnershipThe Tennessee school’s CAD Academy is now offering training in Gemvision’s MatrixGold software.
GradingMay 22, 2023
Blackstone Officially Inks Deal to Acquire IGIBlackstone is buying the 80 percent stake in the lab owned by a Chinese company as well as the 20 percent held by the Lorie family.
SourcingMay 22, 2023
State of the Colored Stone Market: Dropping Some Valuable GemsIn a collection of Q&As, key players give insight on supply, demand, the importance of origin, and whether the “Color of the Year” matters.
SourcingMay 22, 2023
De Beers Consolidates Auctions as Diamond Sales Lose Steam The company confirmed it will be combining the auctions for the fifth and sixth sales cycles into one.
MajorsMay 22, 2023
Stuller Promotes Four Employees Amid Organizational UpdateAmong other changes, Stanley Zale, the former vice president of diamonds and gemstones, is leaving the company after 17 years.
MajorsMay 22, 2023
AGS Confirms Members of 2023-2024 Board of DirectorsOne new addition was announced at the Conclave membership breakfast.
AuctionsMay 19, 2023
It’s a White-Glove Sale for JAR Jewels at Christie’sThe 28-piece collection is the largest to be offered at auction.
GradingMay 19, 2023
Report: Blackstone to Buy IGI for Up to $550MThe deal could be signed as early as this weekend, according to a report by The Economic Times.
CollectionsMay 19, 2023
Piece of the Week: Marie Lichtenberg’s ‘Check’ LocketIt’s an ultra-luxurious version of the designer’s signature style.
Recorded WebinarsMay 19, 2023
Watch: Tips on Preparing and Packing for Las VegasFour guests join Michelle Graff and Amanda Gizzi to discuss the importance of being organized and what shoes they wear at the shows.
