CEO Bogliolo: Tiffany will reach new heights in the LVMH deal

Tiffany´s CEO Alessandro Bogliolo thinks the merge with the French luxury group LVMH will help the company to reach new heights. He commented the merge deal in the company press release yesterday.

-Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values, Mr Bogliolo said.

The takeover deal was well managed. According to Financial Times, the LVMH CEO Bernard Arnault visited the US in the opening ceremony of the Louis Vuitton leather production plant in Texas in October. The US President Donald Trump was also one of the firsts to know of the acquisition, although no names was mentioned to him, Mr Arnault told the FT reporter yesterday of that Texas-event.

And the business circles are small in the luxury business. For example the CEO of Tiffany, Mr Bogliolo is also a known-person to LVMH from his earlier carrier as a senior position at the Italian fashion house Bulgari, now part of the French luxury group.

The Tiffany takeover or LVMH´s Christmas present is the biggest deal for the company. According to Bloomberg Opinion the deal values the Tiffany about 16 times Ebitda, which is nice compared to the earlier deals in the industry. According to Bloomberg data, the LVMH purchase of Bulgari in 2011, the valuation was 23-24 times, as was the Swiss company´s Swatch purchase of Harry Winston in 2013.

So, what is going to happen next? Will the mergers and acquisitions trend in the luxury business continue? Sure. And all luxury companies are heading to Asia. It is also expected that LVMH will increase the Tiffayny´s presence in the Asian markets and find the best locations for the high-end consumers of Tiffany. All studies show that the biggest growth for luxury brands is coming from Asian consumers in the coming years.

As Mr Arnault told the Financial Times, LVMH is increasing the desirability of the Tiffany brand.

– My goal with Tiffany -as it is for Louis Vuitton or Dior – is that desirability for the brand should be higher in 10 years time than it is right now, he said in the FT interview.

The announced deal will increase the other major luxury brands interest to join the growth race. The French rival Kering, with brands like Gucci, Saint Laurent and Bottega Veneta and the Swiss Richemont, with brands like Cartier, IWC and Piaget, are in the line.

The stock markets have also seen the increase of interest and for example nearly all the major luxury companies were trading up on Tuesday in the Tiffany aftermatch.

LVMH was trading up 0,77 % at 407 euros, Tiffany slightly up 0,01 % to 133 dollars, Kering (KER) up 0,40 % at 546 euros and the UK Burberry (BRBY) up 0,24 % to 2093 pounds. Only the Swiss Richemont (CFR) was trading down, 0,57 % at 76 Swiss francs.

Picture: Luxury watches from LVMH Group: Hublot Big Bang, Tag Heuer, Bulgari

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LVMH to buy Tiffany – shares up

The French luxury group LVMH Moët Hennessy Louis Vuitton SE (MC) and the US jeweler Tiffany & Co. (NYSE: TIF), have today announced that the companies have entered into a definitive agreement.

This means that LVMH (MC) will acquire Tiffany for $135 per share in cash, in a transaction with an equity value of approximately €14.7 billion or $16.2 billion.

Tiffany´s share is trading at 133,02 dollars, up 5,98 % and LVMH´s at 402,20 euros, up 1,50 %.

According to the Tiffany´s and LVMH´s joint press release, the acquisition of Tiffany will strengthen LVMH’s position in jewelry and further increase its presence in the United States. The addition of Tiffany will transform LVMH’s Watches & Jewelry division and complement LVMH’s 75 distinguished Houses.

-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. 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, Bernard Arnault, the chairman and CEO of LVMH said in the release.

– 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 Farah, chairman of the Board of Directors of Tiffany, said.

According to the release, the transaction is expected to close in the middle of 2020 and is subject to customary closing conditions, including approval from Tiffany’s shareholders and the receipt of regulatory approvals.

 

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LVMH and Tiffany may announce the deal on Monday – Bloomberg

 

HD_PatekPhilippe_ChronographeFlybackQuantiemeAnnuelReference59601_Big&smallThe global luxury group, the French LVMH and the US jeweler Tiffany (TIF) are having their board meetings today on Sunday and it might be possible that the merger deal might be announced already on Monday, Bloomberg News says.

According to the information, LVMH has raised the price to 135 dollars a share, which would mean that the valuation of the New York jeweler would be more than 16 billion dollars. Tiffany´s shares closed to 125,51 dollars on Friday in Wall Street giving the market cap of 15,16 billion dollars. In October the LVMH-offering price was 120 dollars per share in cash.

The French LVMH (MC) is trying to enter the US jewellery markets with the acquisition of  Tiffany, which has over 300 different retail stores globally. It operates also in the field of luxury watches and home & accessories.

LVMH is the owner of the several well-known brands like Louis Vuitton, Dior, Bulgari, Hublot, Tag Heuer, DKNY, Belmond and Marc Jacobs. LVMH´s shares closed up 1,80 % to 396,20 euros in Paris on Friday.

Picture: Patek Philippe luxury watch “ChronographeFlybackQuantiemeAnnuelReference59601” Baselworld 2019. Tiffany is also reseller of Patek Philippe, Geneva watches.

 

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LVMH raising its Tiffany offer to 15,8 billion dollars

The French luxury group LVMH (LVMH) is raising its Tiffany (TIF) offer to 15,8 billion dollars, write the Reuters and Financial Times. According to the news, the new takeover offer is close to 130 dollars a share. This would give the market value of Tiffany to 15,8 billion dollars including the 350 million net debt.

This new offer would mean that the LVMH would be able to have more information about the financials of Tiffany. On the other hand, they have not entered an exclusivity agreement.

The French luxury group LVMH is trying to expand to the US markets with the offer of the 1837 founded US company. Tiffany´s shares has been increasing during the talks and yesterday the closing was down 0,14 % to 123,33 dollars in New York.

Finance Business

Tiffany: Centerview Partners and Goldman Sachs are financial advisors

Tiffany & Co (TIF) has today made a press release of the takeover bid of the French luxury group LVMH. According to the release, the company says it is carefully reviewing the proposal, which is unsolicited and non-binding.  LVMH Moet Hennessy – Louis Vuitton takeover bid is $120 per share in cash.

– While the parties are not in discussions, Tiffany’s Board of Directors, consistent with its fiduciary responsibilities, is carefully reviewing the proposal, with the assistance of independent financial and legal advisors, to determine the course of action it believes is in the best interests of the Company and its shareholders. Tiffany shareholders need take no action at this time, the company says.

Centerview Partners and Goldman Sachs are serving as financial advisors to Tiffany and Sullivan & Cromwell is serving as Tiffany’s legal advisor, the release states.

LVMH has also published a short stock exchange release saying that according to the market rumours, the French group has made an offer to Tiffany, but the outcome will be seen later.

Business Finance

Tiffany gets LVMH bid of 120 dollars a share

The US luxury house Tiffany & Co (TIF) has received a takeover bid from the French luxury group LVMH (LVMH). The bid is about 120 dollars a share, valuing the Tiffany to close to 14,5 billion dollars. The closing price of Friday was 98,55 dollars, which means the bid is about 22 % more than the market price.

According to Wall Street Journal, the French luxury group could have to rise the bid if they want to buy the enlargement to the US markets.

 

 

 

 

 

 

 

 

 

 

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LVMH is considering Tiffany takeover – Bloomberg

The world largest luxury company, the French LVMH (LVMH) is considering a takeover of the US luxury company Tiffany & Co (TIF). The takeover, according to Bloomberg, would increase the French company´s presence in the US markets, but according to the news, there is no guarantee of the possible deal.

Tiffany, which was founded in 1837 in Manhattan, is one of the leading luxury houses in the US with the annual turnover of 4,4 billion dollars and net earnings 586 million dollars in 2018. The company has over 300 brand stores globally for its jewellery, timepieces, accessories and fragrances.  Nearly half of its sales comes from the US markets, while Asia counts about 30 %, Japan 15 % and Europe 11%.

The market cap of Tiffany is about 11,9 billion dollars, while the French rival LVMH is about 190 billion euros.

The French company LVMH has been investing in the US markets and last week the company opened its Louis Vuitton factory in Texas. LVMH´s other brands in the luxury jewellery category are for example Bulgari, Dior, Hublot and Tag Heuer.

Both companies enhance the luxury and sustainability integration and for example Tiffany has launched a Diamond Source Initiative, where customers can know the geographical region of their individually registered diamonds.

 

 

 

 

 

 

 

 

 

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