• LVMH announced Monday that it has finalized a deal to acquire US jewelry retailer, Tiffany & Co, for $16.2 billion.
  • This is LVMH’s most expensive acquisition ever. The company already owns brands such as Christian Dior, Louis Vuitton, and Hennessy and is the world’s largest luxury conglomerate.
  • The acquisition will strengthen LVMH’s exposure in the US market and allow it to become a bigger player in fine jewelry.
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LVMH confirmed Monday that it will acquire US jewelry chain Tiffany & Co for around $16.2 billion.

This is LVMH’s most expensive luxury acquisition ever; the luxury conglomerate said it agreed to $135 per share in cash for Tiffany.

The news comes after several weeks of speculation over whether Tiffany would accept a deal after LVMH first made an offer of $14.5 billion for the retailer.

“We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewelry world, to the LVMH family,” Bernard Arnault, CEO of LVMH, said in a statement to the press on Monday.

He continued: "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." LVMH's portfolio includes 75 different brands including Christian Dior, Louis Vuitton, and Hennessy.

This new acquisition gives European-headquartered LVMH greater exposure to the US market (44% of Tiffany's sales are done in the US, Canada, and Latin America) and should help it to become a bigger player in fine jewelry, an area that analysts say it is lacking in.

"Hard luxury is the only sub-sector where LVMH is not the leader, and we know that Mr Arnault likes to be always #1," RBC analyst Rogerio Fujimori wrote in a note to clients at the beginning of the month, referring to LVMH's billionaire CEO Bernard Arnault.

Moreover, the Tiffany name is well-recognized, it's a global player (and, crucially, one of the top jewelry brands in China), and it has an accessible price point, which all help LVMH to reach a wider audience.