Following months of turbulent negotiation and an attempt to back out of the deal, luxury group LVMH has completed its $20.3 billion (US$15.8 billion) acquisition of Tiffany & Co.
The business has installed Anthony Ledru as Tiffany’s chief executive, and Alexandre Arnault as executive vice president – LMVH chief executive Bernard Arnault’s son – while Michael Burke will chair the business’ board.
According to Reuters the new leadership team will likely focus on bringing in younger shoppers, as well as improving the brand’s standing in Asian regions, by using what it learned improving Bulgari since it was acquired in 2011.
Tiffany’s current chief executive Alessandro Bogliolo will remain on board to assist a smooth transition and will then depart on Jan 22, along with several other executives.
“I’m honored to have led Tiffany as a public company and contributed with such a talented team to further strengthening Tiffany’s iconic standing,” Bogliolo said.
“Thanks to the hard work and commitment of all our team members, Tiffany is ideally positioned to continue its growth.”
According to court papers seen by Reuters, Bogliolo’s payout could exceed $56.7 million (US$44 million).
Bogliolo’s replacement, Ledru, formerly served as Tiffany’s senior vice president of North America between 2013-14, and said he is excited to rejoin and lead the business.
“The inclusiveness and optimism upon which Tiffany was founded resonate more now than ever… Going forward, I have deep confidence in LVMH’s commitment to protect the brand, drive its growth strategy and apply the highest standards of retail excellence to Tiffany,” Ledru said.
“The potential ahead is limitless.”
The acquisition was originally scheduled to be completed between November 24 and December 31 2020, but was postponed after the French European and Foreign Affairs Minister directed LVMH to defer the deals completion to after January 6.
LMVH initially said this would make it unable to complete the terms of the deal, which stipulated the purchase would be completed by November, but that was open to pushing the purchase date back if the asking price could be renegotiated.
