LVMH, the luxury goods group behind Louis Vuitton and Marc Jacobs, is to take control of accessories giant Bulgari.
LVMH agreed to buy the Bulgari family’s 50.4% stake in a share swap and will make a tender offer for the rest. The French luxury goods giant said it would issue 16.5m shares in exchange for the 152.5m Bulgari shares held by the founding family.
The Bulgari family will now be the second largest family shareholder in LVMH after chairman and chief executive Bernard Arnault.
Bulgari chief executive officer Francesco Trapani said: “Our entrance into LVMH will allow Bulgari to reinforce its worldwide growth and to realise significant synergies.”
Trapani will now join the executive committee of LVMH and head up the French group’s watch and jewellery division. Current head of the division Philippe Pascal will be given new responsibilities.
The Bulgari family is also permitted to have two representatives on the board of directors.
LVMH also holds a 20.21% in luxury goods group Hermes.