Luxury giant LVMH has recently disclosed that it will be adding a new brand to its portfolio by signing a new agreement. The latest deal is like a blue box for the company. The board members of Tiffany & Co. and LVMHF had a meeting held to have a word on the acquisition deal that is going to cost the jeweler giant more than $16 Billion. The firm will be reporting about the deal in a few days’ time after having the terms and conditions finalized. The luxury group still has its foot held strong onto the ground in this fashion-indulged world.
The new deal is expected to help the company try its hand out in other areas as well. The company will have more American consumers added and also its jeweler business expanded within a few years. The luxury group can use its filled pockets to help Tiffany reach the shores as its last few years have been rocky. This is a good opportunity to connect with millennial consumers. Tiffany is expected to get $135 per share from LVMH and it is one of the biggest deals in history for the luxury giant. The deal was struck by the luxury conglomerate on October 28, 2019, to purchase Tiffany for $120 per share in cash, which is almost $14.5 Billion. At that time the offer was a 20% premium on the Tiffany share price but as the stocks rose the deal reached $126. LVMH earns only a quarter of its revenue from the US while it makes 40% from other countries. The deal is believed to help Tiffany boost its sales and consumer connection. Tiffany can help LVMH amplify its jewelry and watch business.
Similarly, its fashion brands like Christian Dior Fendi and Louis Vuitton plus drinkmaker brands like Moet and Hennessy are also having their sales and finances boosting. In addition to all this, the company has recently acquired Fenty and Fenty Beauty fashion and cosmetics lines owned by Rihanna, which has shown a unique, successful market among its consumers. The company had acquired Italian jewelry brand Bulgari and watchmakers TAG Heuer and Hublot as well, but these brands only made 9% of the company’s entire revenue.