The largest mergers and acquisitions in the luxury industry have occurred.
Editor’s note: This article is from WeChat public account “ New Retail Think Tank ” (ID: newretailinsider), author Li Dan.
Large mergers and acquisitions in the luxury industry. French luxury goods giant LVMH Group successfully won the US jewelry brand Tiffany.
According to Reuters, the purchase price is US $ 135 per share, totaling approximately US $ 16.2 billion, or approximately RMB114 billion. The transaction will be in cash and is expected to close in mid-2020. This is the largest acquisition in the history of the luxury industry.
Tiffany has a challenge
Tiffany was founded in New York in 1837. The film “Tiffany’s Breakfast” starring Audrey Hepburn in 1961 made it famous worldwide. Tiffany’s most famous jewelry is a diamond wedding ring that many women dream of.
In recent years, Tiffany has encountered challenges and its performance has been volatile. The latest financial report shows that in the first half of this year, Tiffany’s global net sales fell 3% to 2.1 billion US dollars, comparable sales fell 4%; net profit of 260 million US dollars, down 9% year-on-year.
Reuters said that the management of LVMH Group hopes to reach an acquisition agreement before Tiffany releases its quarterly report. After all, such good news can save its stock price. In October, the news that LVMH Group planned to acquire Tiffany, Tiffany’s stock price soared 32% a day. The news of the purchase price confirmed that Tiffany rose 6% that day, with a market value of 16.1 billion US dollars.
On December 5, US time, Tiffany will release the third quarter of fiscal 2020. The market expects its performance to be as disappointing as in the first half of the year, and can only count on new owners to save it.
Lightning acquisition is only for a touch of “Tiffany Blue”
LVMH GroupBig Three.
Kering’s most important brand is GUCCI, which contributes 60% of its revenue. In addition, Kering Group also has luxury brands such as Bottega Veneta, YSL and Balenciaga; while luxury brands owned by Compagnie Financiere Richemont are mainly watches, Jewellery, such as Cartier, Montblanc, Van Cleef & Arpels and other brands.
In contrast, LVMH Group is a well-deserved boss in the Big Three, both in terms of revenue and net profit.
LVMH Group, a luxury empire, was created step by step by Chairman and CEO Bernard Arnault.
At the end of the 1980s, Arnold bought LVMH stock in large quantities at very low prices. After a difficult lawsuit, he succeeded in owning the LVMH Group.
Arnold is good at making large acquisitions and transforming poorly performing companies. Under his management, a huge luxury empire is taking shape. LVMH Group not only sells boutique fashion, bags and watches to the rich, but also sells high-end wines and jewelry.
LVMH Group ’s largest market is Asia, with nearly 40% of its revenue coming from Asia. In recent years, China’s economy has taken off, and the demand for luxury goods has increased, allowing Arnold, who holds 47% of the company’s shares, to make a lot of money.
On the Bloomberg Billionaires Index, Arnold ranked third with $ 103 billion in net worth, only 80% behind Bezos, the world’s richest man.
LVMH GroupBig Three.
Kering’s most important brand is GUCCI, which contributes 60% of its revenue. In addition, Kering Group also has luxury brands such as Bottega Veneta, YSL and Balenciaga; while luxury brands owned by Compagnie Financiere Richemont are mainly watches, Jewellery, such as Cartier, Montblanc, Van Cleef & Arpels and other brands.
In contrast, LVMH Group is a well-deserved boss in the Big Three, both in terms of revenue and net profit.
LVMH Group, a luxury empire, was created step by step by Chairman and CEO Bernard Arnault.
At the end of the 1980s, Arnold bought LVMH stock in large quantities at very low prices. After a difficult lawsuit, he succeeded in owning the LVMH Group.
Arnold is good at making large acquisitions and transforming poorly performing companies. Under his management, a huge luxury empire is taking shape. LVMH Group not only sells boutique fashion, bags and watches to the rich, but also sells high-end wines and jewelry.
LVMH Group ’s largest market is Asia, with nearly 40% of its revenue coming from Asia. In recent years, China’s economy has taken off, and the demand for luxury goods has increased, allowing Arnold, who holds 47% of the company’s shares, to make a lot of money.
On the Bloomberg Billionaires Index, Arnold ranked third with $ 103 billion in net worth, only 80% behind Bezos, the world’s richest man.