LVMH Announces Acquisition of Tiffany & Co for $16.2 Billion | Biggest Deal Ever in Luxury

LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury company, led by Bernard Arnault, founder, chairman and largest shareholder of LVMH, announced on Monday that his proposed acquisition of Tiffany & Co has been accepted. The $16.2 billion deal makes it the largest ever in the luxury sector and represents an increase over LVMH’s opening bid of $14.5 billion.

“Tiffany is an American icon and was on the list of brands for a long time we thought was a good potential match,” Mr. Arnault told the New York Times in a telephone interview from Paris.

“We expect this to be the starting gun for a further round of industry consolidation in the luxury sector over the next 12 to 18 months, with the significant polarization we continue to see between the stronger and weaker brands,” said Swetha Ramachandran, an investment manager at GAM Global Luxury Brands Fund.

The acquisition marks the second major move into the American luxury market by LVMH this year. In a major innovation move, LVMH created a new luxury house Fenty, with Rihanna earlier this year. That major launch was also accompanied by the LVMH announced acquisition of Belmond luxury travel group late in 2018, along with a significant investment in Stella McCartney, that left the designer with majority control. McCartney also became a chief adviser to LVMH on sustainability issues.

Arnault stressed that taking Tiffany & Co into the LVMH family will remove the brand from the stress of Wall Street’s demands for consecutive quarter profits.

“We will focus on building long-term desirability,” he said. “When you are an independent brand listed on the American stock exchange, your goal has to be the next quarter profit. We can free them to have a different state of mind in the company.”

When LVMH bought Belmond late last year, AOC asked if Bernard Arnault will save the elephants. Given Tiffany & Co’s ongoing. commitment to elephant conservation, through superwoman Doutzen Kroes’ Knot On My Planet foundation, we will up the ante on the question. There’s a synergy building here for elephants and Africa, and I have a very good feeling about it. LOEWE, another LVMH luxury brand, is also involved with Doutzen and Knot On My Planet. Watch this space. Belmond is deeply invested in sustainable safaris in Africa. ~ Anne

Related:

A 14.5 Billion Dollar Engagement Ring: Why Tiffany Should Say "Yes" to LVMH

A 14.5 Billion Dollar Engagement Ring: Why Tiffany Should Say "Yes" to LVMH

On October 28, 2019, Tiffany & Co confirmed that it had received an unsolicited but non-binding offer from LVMH to purchase its securities at $ 120 per share , an offer of $ 14.5 billion. What are the six main reasons that can push LVMH to a transaction of this magnitude? What impact would this acquisition have on the financial structure of the French group? What about the fact that Tiffany & Co's board is asking for an increase in the offer?

Tiffany Commits To Sourcing Transparency For Diamonds .18 Carats and Larger

Tiffany & Co appears on AOC frequently, given their significant contributions to wildlife conservation, frequently working with superhuman Doutzen Kroes. Tiffany & Co understands that younger customers have different values from their parents and grandparents, when the topic is inclusivity and responding to our global climate crisis. These younger customers are also concerned about the sourcing of their products in an industry known for some heartless business practices around the world.

The Fifth Avenue jeweler has now committed to full transparency around the origins and ultimately the journey from mining to a sale at Tiffany & Co of all of its diamonds (0.18 and larger.

The diamond’s provenance will be listed directly next to the stone in stores, and a unique serial number, invisible to the naked eye, will be laser-etched on the gem’s surface. By 2020, the jewelry house vows to share the entire craftsmanship journey of each diamond, including cutting and polishing workshops in addition to the mine’s location.

The Fifth Avenue jeweler has now committed to full transparency around the origins and ultimately the journey from mining to a sale at Tiffany & Co of all of its diamonds (0.18 and larger.)

“Through transparency in sourcing and craftsmanship, we hope that people will further understand the important journey of a Tiffany diamond, and its positive impacts around the world,” said Anisa Kamadoli Costa, chief sustainability officer at Tiffany & Co.

Priyanka Chopra's Nick Jonas Bridal Shower Lights Up Tiffany & Co's Blue Box Cafe

Priyanka Chopra's Nick Jonas Bridal Shower Lights Up Tiffany & Co's Blue Box Cafe

Tiffany & Company has figured front and center in the engagement of Nick Jonas and Priyanka Chopra. In a scene straight out of Sweet Home Alabama writes Vogue, Jonas reportedly shut down the jeweler’s London store in order to purchase his bride’s engagement ring in privacy.

Tiffany & Co’s flagship store on New York’s Fifth Avenue was the scene of Priyanka Chopra’s bridal shower at the fourth floor Blue Box Cafe, hosted by bridesmaids Anjula Acharia and Mubina Rattonsey. The Sunday event welcomed about 100 people including Chopra’s future sister-in-law Danielle Jonas, Kelly Ripa, and Lupita Nyong’o.

Lupita Nyong'o Narrates Award-Winning 'My Africa' Virtual Reality Film For Elephant Conservation

Lupita Nyong'o Narrates Award-Winning 'My Africa' Virtual Reality Film For Elephant Conservation

A virtual reality film ‘My Africa’, narrated by Oscar-winning film star Lupita Nyong’o and supported by The Tiffany & Co. Foundation, is among the winners of the annual Jackson Hole Science Media Awards.

The nine-minute film won top honors in the Virtual Reality/360° Storytelling category for “effectively using 360 technology and resources to advance an appreciation or understanding of a scientific discipline, discovery or principle.”

The film which was commissioned by Global environmental organization Conservation International which supports community-led wildlife conservation in Northern Kenya —is available in 7 languages including English, French, Mandarin, Portuguese, Samburu, Spanish and Swahili.

Directed by David Allen, the project was captured with virtual reality cameras in the Namunyak Wildlife Conservancy in Samburu County of northern Kenya at the Reteti Elephant Sanctuary, the first elephant orphanage in Africa owned and operated by the local community. In a region where conservation has traditionally been pursued by outsiders, Reteti — and the surrounding conservancy organization, Northern Rangelands Trust — offer a model grounded in local leadership and traditional knowledge, explains Creative Planet Network.

Doutzen Kroes Says Ambassador Role For #Knot On My Planet Gives Her Sense Of Purpose

Doutzen Kroes Says Ambassador Role For #Knot On My Planet Gives Her Sense Of Purpose

Supermodel Doutzen Kroes didn’t just become an activist two years ago, but the Dutch superstar model, mom, wife, design collaborator and activist for humanity tells Vanity Fair that it’s her role as global ambassador for #Knot on My Planet that gives her a tremendous sense of purpose.

Vanity Fair checked in with Kroes before shooting the new #Knot on My Planet campaign with Naomi Campbell and Serena Williams also part of the production. The Knot on My Planet elephant conservation effort gained momentum when Reed Krakoff became chief artistic officer of Tiffany & Co. last year. The new collection will expand beyond elephants to also include rhino and lion pieces.

Tiffany has partnered with the Elephant Crisis Fund on the #KnotOnMyPlanet campaign, launching an initial campaign featuring Linda Evangelista, Christy Turlington Burns, Naomi Campbell and other prominent voices tying a knot to never forget elephants under threat from ivory poachers.

While there has been some good news — China banned all commercial ivory trading in 2017 — the situation remains bleak in many African countries. Most recently, nearly 100 elephants were discovered dead in Botswana, a country that has relaxed its elephant protection policies under its newly-elected president Mokgweetsi Masisi. New reports in Africa are that Botswana is also considering lifting its hunting ban.

Followup October. 21, 2018: The New York Times wrote on September 28 an article ‘Doubts Mount in Botswana Over Charity’s Claim of Elephant ‘Poaching Frenzy’.

We will dig much deeper into the very thoughtful arguments raised in this article concerning the influences of outside groups involved in elephant conservation being pitted against the wishes and interests of native Africans living on the land. The NYT article is too complex and valuable a read to treat it as an addendum.

AFRICAN ELEPHANTS PHOTOGRAPHED BY SUSAN MCCONNELL.

Returning to Tiffany & Co, Anisa Kamadoli Costa, chief sustainability officer at Tiffany and chairman and president of The Tiffany & Co. Foundation, sat down with Dr. Iain Douglas-Hamilton, founder of Save the Elephants, to discuss his tireless efforts on behalf of these magnificent creatures and what we can all do to help.

Elephant Love: Doutzen Kroes Launches Phase 2 Of Tiffany's #KnotOnMyPlanet

In 2016 supermodel Doutzen Kroes launched her #KnotOnMyPlanet campaign, created to support elephant conservation. Tiffany & Co came on board as a major sponsor and collaborator.

“We tie a knot when we don’t want to forget,” Doutzen said in the 2016 launch, explaining the campaign’s slogan. “We’ve been forgetting the elephants, and if we don’t do something now, they will disappear.”

The 2017 #KnotOnMyPlanet campaign launched in August with Tiffany & Co. developing key pieces to support elephant conservation. The New York jeweler has committed at least $1 million of sales to the Elephant Crisis Fund

“In the face of political uncertainty, those of us in the business community have a responsibility to keep moving forward,” Anisa Costa, chief sustainability officer and president of the Tiffany & Co. Foundation, explains. “From taking bold action on climate change to supporting organizations working to protect biodiversity and precious land and seascapes, Tiffany will continue to use the full power of its brand to bring attention to these critical issues.”

“Socially conscious consumers are demanding higher levels of sustainability and activism from companies today," Costa adds, "and the Save the Wild collection is an exciting opportunity for us to both increase awareness and financially support an issue we care deeply about."

Shop the Tiffany Save the Wild Collection

Doutzen Kroes Leads Knot On My Planet, Igniting Fashion Industry For Elephant Conservation

Doutzen Kroes Leads Knot On My Planet, Igniting Fashion Industry For Elephant Conservation

Sadly, new reports suggest that we are losing ground in the battle to save elephants. The goal of the Knot on My Planet campaign is to raise $15 million for the Elephant Crisis Fund. In addition to Tiffany & Company and these models stepping up for elephants, superwomen Candice Swanepoel, Adriana Lima and Cara Delevigne are on board -- joining Miranda Kerr, Christy Turlington, Linda Evangelista and Naomi Campbell. These leaders of the campaign will incorporate a knot into their photos on social media to remind people to donate.