Tiffany & Co. has received an unsolicited $14.5 billion acquisition proposal from luxury fashion house LVMH. Tiffany confirmed the offer and noted that the parties are not in discussion, but the retailer’s Board of Directors is reviewing the proposal as part of its fiduciary responsibilities.
The deal values Tiffany at $120 per share, a 20% premium over the stock’s price as of Oct. 28, and would bring Tiffany under the same umbrella as luxury brands such as Louis Vuitton and Bulgari. However, Tiffany noted in a press release that it is “successfully executing on its business plan and remains focused on achieving its goal of becoming The Next Generation Luxury Jeweler.”
If Tiffany changes its mind or LVMH sweetens the deal, the acquisition would be the latest of several luxury industry shakeups taking place over the past year:
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- Michael Kors acquired Versace for $2 billion in late 2018;
- Farfetch purchased New Guards Group, a brand platform that has launched several global luxury fashion brands, for $675 million;
- Barneys New York has entered a deal to be acquired by Authentic Brands Group and B. Riley Financial for $271.4 million; and
- Hudson’s Bay Co. will be taken private by shareholders.
