The US "Wall Street Journal" website reported on October 27 that, according to a person familiar with the matter, the French company has sent a letter to the head of Tiffany & Co. in recent weeks, which generally stated that it is about $120 per share ($1 is about $7.06). The price of RMB) is all cash in the acquisition of Tiffany's plan. This gives Tiffany's valuation close to $14.5 billion.
The report said that some people said that the two companies have not started negotiations on this, but Tiffany is expected to respond quickly. According to one person familiar with the matter, although the premium of the offer is 30% or more compared to the stock price of Tiffany when the offer is issued, if Louis Vuitton wants to make the deal, it is expected to pay even higher. price.
The report pointed out that the acquisition of Tiffany will increase the exposure of the Louis Vuitton Group based in Paris in the field of jewelry, which is one of the fastest growing areas of the luxury goods industry. According to Bain, in 2018, the global jewelry market grew at a rate of 7%, and the market size reached about 18 billion euros (about 20 billion US dollars). With more than 300 stores worldwide, Tiffany & Co., along with Cartier and Louis Vuitton's Bulgari, is one of the world's largest jewelers, but it has not kept pace with the development of European competitors.
Tiffany's annual revenue is about 4 billion US dollars, and in recent years has been facing a difficult situation of weak sales growth.
According to reports, two years ago, under the pressure of investors, Tiffany fired the then CEO, the 182-year-old brand has been trying to restore business conditions. The company's share price plummeted to nearly $60 in 2016 and has been hovering around $100 for most of the most recent year.
Under the leadership of CEO Alessandro Borillo, the jeweler expanded into China and plans to open flagship stores in several major cities. Louis Vuitton's new high-end jewellery collection inspired by medieval heroines. Tiffany is still renovating its New York flagship store on Fifth Avenue, and spending on visitors in the US market is an important source of income for the company.
Tiffany is also trying to expand its appeal through marketing campaigns targeting minority and same-sex couples, adding new products to young consumers, and launching a jewelry line for men.
However, in recent quarters, Tiffany's sales in the US and Asia have declined. Excluding exchange rate fluctuations, comparable sales have fallen for two consecutive quarters. In August of this year, the company’s executives warned that the slowdown in macroeconomic growth could affect the profit for the rest of the year.
According to reports, the acquisition of Tiffany will be one of the largest acquisitions by Bernard Arnault, CEO and controlling shareholder of Louis Vuitton Group. In 2017, Arno spent 12 billion euros to merge the famous fashion brand Dior with the Louis Vuitton Group.
No comments:
Post a Comment