- Kristopher Fraser |
After months of back and forth, legal complications, stalemates, a global pandemic, Tiffany & Co.’s shareholders approved a 15.8 billion dollar deal with luxury conglomerate LVMH. At a virtual stakeholder meeting, 99 percent of votes were cast in favor of the deal where LVMH would acquire Tiffany & Co.
LVMH made an offer for Tiffany & Co. at the end of 2019, but attempted to back out from the deal when the global coronavirus pandemic dealt a heavy blow to the luxury goods industry. Tiffany ended up being pushed into a legal battle that forced LVMH to honor the deal.
While Tiffany’s valuation wasn’t what it was prior to the pandemic, the company has said their sales are improving and cited demand recovery in the United States thanks to holiday season, in addition to recovery in China, which is one of the biggest luxury markets in the globe.
LVMH renegotiated the deal shaving off 425 million dollars off of the initial price tag. The final deal is expected to close by 2021.
photo: via lvmh.com