LVMH Acquires Tiffany & Co. For $16.2 Billion

Curated via Twitter from W Magazine’s twitter account….

And now that the deal is finalized, it’s generally been regarded as a coup for both companies: LVMH can help Tiffany grow and connect with younger, hipper audiences, while Tiffany will make LVMH a major competitor in the jewelry sector while increasing the company’s foothold into American markets (fresh off the opening of the company’s controversial new Louis Vuitton workshop in Texas). “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,” Roger N.

Last month, analysts at Bernstein wrote that an LVMH Tiffany takeover “could make a lot of sense. " But the purchase was so enormous that, as RBC analyst Rogerio Fujimori wrote in a research note reported by WWD, it will require “a bit more time” to generate a return on investment. “We believe that LVMH can still generate long-term value from this strategic deal if it manages to reinvigorate Tiffany’s top-line story and improve Tiffany’s profitability in the long term,” he added. Meanwhile.

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