PARIS — French luxury group LVMH has agreed to buy New York jeweler Tiffany & Co. for $16.2 billion, adding a famed star to its portfolio that already boasts Louis Vuitton, Christian Dior and Bulgari.
LVMH said in a statement Monday it will take over the 182-year old Tiffany and its 300 boutiques worldwide at $135 a share. The price tag is higher than the $14.5 billion cash offer LVMH made last month.
Tiffany, known for its delicate jewelry, distinctive blue boxes and an Audrey Hepburn movie, says the deal will ensure its long-term sustainability. The company is trying to transform its brand to appeal to younger and more digital shoppers, and could use an owner with deep pockets to help expand its business.
Tiffany's stock closed Monday up more than 6% in New York, while LVMH rose 2% in Paris.
LVMH, led by billionaire Bernard Arnault, says the deal will strengthen its position in high-end jewelry and in the U.S. market. The purchase will help the French conglomerate compete with Gucci-owner Kering Group and Cartier-owner Richemont SA. With its purchase of Tiffany, LVMH is also making a big bet on China's economy— Tiffany has been expanding its presence in China with plans to build more stores there.