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LVMH's acquisition of Bulgari will double its watches and jewellery division
LVMH's acquisition of Bulgari will double its watches and jewellery division

LVMH ramps up jewellery arm with Bulgari takeover

Luxury group LVMH is to double the size of its watch and jewellery division with the acquisition of Bulgari in a deal valued at €3.7 billion ($5.1 billion).
The move has been hailed as LVMH’s biggest acquisition in a decade. Bulgari is best known for its high-end watches and jewellery, with the brand’s fragrance, cosmetic and accessories divisions being secondary sources of revenue.

Upon completion of the deal, LVMH will issue 16.5 million shares to the Bulgari family, which will see them become the second largest family shareholder of the LVMH Group.

LVMH chairman Bernard Arnault said the alliance was “a perfect combination from all points of view”.

“We share the same culture in terms of respect for identity and roots of the brands, quest for excellence, creativity and innovation,” he said.

As part of the deal, Bulgari chief executive Francesco Trapani will take the helm of LVMH’s watches and jewellery segment in the second half of 2011.

Trapani said, “I am greatly honoured that the management of LVMH’s watches and jewellery activities, which include prestigious brands such as Tag Heuer, Chaumet, Zenith, Hublot, Fred and De Beers, has been entrusted to me.”

“Bulgari and these brands will be able to invest and innovate even further to become the world leader in the high-end segment,” he added.

The deal comes a month after LVMH’s 2010 results were released. LVMH's watch and jewellery division posted a record leap in annual profits, which rocketed 103 per cent to €128 million ($171 million) from 2009 to 2010.

More reading:

LVMH doubles watch and jewellery profits
Record high for Bulgari jewellery sales
LVMH watch and jewellery profits trounce Bulgari










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