French luxury giant LVMH has reached an agreement to buy jewellery maker Tiffany & Co for €14.7bn (£12.6bn).
In a statement, LVMH said the acquisition of Tiffany would “strengthen its position” in the jewellery and watch market. It said it also planned to increase its presence in the US market.
Alessandro Bogliolo, chief executive officer of Tiffany, said: “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 jeweller’.”
Revenue at LVMH’s fashion and leather goods revenue jumped 22% in the nine months to 30 September 2019 year on year.
The French luxury group’s fashion revenue increased from €13bn in 2018 to €15.9bn (£11.3bn to £13.8bn), which it attributed to Louis Vuitton’s growth in all its businesses and in all regions.