LVMH said Monday it has reached an agreement with Tiffany & Co. to buy the iconic jeweler for $16.2 billion.
The Paris-based multinational luxury goods conglomerate said it was buying Tiffany & Co. at $135 per share in order to increase its presence in the U.S. market and to beef up its jewelry and watches division.
"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," said Bernard Arnault, chairman and CEO of LVMH. "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."
Reports that the deal had been completed surfaced over the weekend following the luxury giant that includes Christian Dior, Louis Vuitton and Fenty having made an unsolicited offer to buy the famed jeweler in late October for $120 per share.
Founded in 1837, Tiffany now has more than 14,000 employees and operates 300 retail stores worldwide.
However, the iconic Manhattan jeweler has struggled recently with fewer young people splurging on diamonds and a drop in demand from tourists to the United States.
Roger N. Farah, chairman of the board of directors for Tiffany, said that following a strategic review, the board decided that the deal would provide the company an "exciting path forward" as the luxury brand group will invest in "Tiffany's unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders."
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