LVMH (LVMUY) , the French group behind luxury labels such as Christian Dior, Fendi, and Givenchy, said it would pay $135 a share for Tiffany (TIF) - Get Report --a $10 premium to the stock's Friday closing price.
"Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources, and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler," said Tiffany CEO Alessandro Bogliolo. "As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship, and strong cultural values."
Analysts have noted that more than half of Tiffany's sales come from outside the U.S., providing LVMH with both a doorway into the domestic luxury market while supporting the group's growth in key markets such as Europe and China.
Watch to see whether or not the deal is enough for Tiffany's to sparkle once again.
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