LVMH has reached a deal to buy Tiffany & Co. (NYSE:TIF) at $135 a share in cash, or $16.2 billion, in a move that will give the company more access to U.S. luxury consumers.
Confirming the deal, LVMH said in a statement that "the acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States."
It said it would also "transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses."
LVMH CEO Bernaud Arnault said that the company intended "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."
LVMH has built up a large portfolio of luxury brands across different retail sectors, from fashion to perfume. Some of its well-known brands include Moët & Chandon, Dom Perignon, Givenchy and Louis Vuitton.
The boards of both LVMH and Tiffany approved the deal on Sunday and the transaction is expected to close in the middle of 2020, subject to approval from Tiffany’s shareholders and regulatory approvals.
LVMH has sweetened its bid for Tiffany from an original offer of $120 per share, made in October. That had been rebuffed by the company that said it significantly undervalued the jewelry maker.
Shares of Tiffany, the iconic New York-based jeweler, have risen over hopes of a higher priced deal. Shares closed on Friday at $125.51. They opened Monday higher by $7.13, or 5.7%, to $132.67.
