LVMH’s $16.2 Tiffany deal to create even bigger luxury colossus

The iconic American jeweler and retailer Tiffany initially played hard to get when the French luxury goods maker LVMH came calling. But it eventually caved in to the French company’s charms—not to mention a share price of $135.

“Although this started as an unsolicited proposal, LVMH ultimately increased its offer to a sufficient price to justify due diligence and then moved its price to $135 per share,” said Francis Aquila (in the photo above), one of the partners at the New York-based megafirm Sullivan & Cromwell who represented Tiffany. “At that level the Tiffany board concluded that accepting the proposal was in the best interest of the shareholders.”

Aquila worked with  Melissa Sawyer in New York as well as Olivier de Vilmorin in Paris, and associates Susie Choi and Chiyel R.A. Hayles. S&C partner Heather Coleman advised on executive compensation matters. The firm didn’t work in a vacuum; assisting them were the in-house teams of both buyer and target. Tiffany’s in-house team was led by Leigh Harlan; LVMH’s by Bernard Kuhn. Advising LVMH was Skadden, Arps, Slate, Meagher & Flom.

The deal is valued at $16.2 billion, and the combination will make LVMH, whose brands include Moët, Fendi, Christian Dior, Givenchy, Kenzo, and, naturaly, Louis Vuitton, even more dominant in the luxury fashion and beverage market.

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