Louis Vuitton owner LVMH Moet Hennessy said on Monday it has entered into a definitive agreement to buy US jeweller Tiffany for $16.2 billion in the luxury goods maker's biggest acquisition so far.
The $135 per share cash deal will strengthen LVMH's position in jewellery and further increase its presence in the United States. The addition of Tiffany will transform LVMH's watches and jewellery division and complement LVMH's 75 distinguished houses.
"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," said Bernard Arnault, Chairman and Chief Executive Officer of LVMH.
Roger N. Farah, Chairman of the board of directors at Tiffany, said the transaction will invest in Tiffany's unique assets and strong human capital while delivering a compelling price with value certainty to the shareholders.
The transaction is expected to close by mid-2020.
Founded in 1837 when Charles Lewis Tiffany opened the first store in downtown Manhattan, Tiffany is a leading luxury brand originated in the United States with customers in more than 300 stores around the globe.