LVMH Takes Over Bulgari in €1.86B Share Deal
March 07, 11
 Bulgari will strengthen LVMH’s smallest yet fastest growing division, watches and jewelry |
The deal values Bulgari at €3.7 billion.
The agreement was concluded this weekend and was approved unanimously by the Board of Directors of both companies. LVMH will submit a Public Purchase Offer at the price of €12.25 per share on the shares held by minority stockholders. The LVMH share is currently trading at €110.95 per share.
Paolo and Nicola Bulgari will remain Chairman and Vice Chairman of the Bulgari board of directors, respectively. The Bulgari Family will be entitled to appoint two representatives to the LVMH board.
Francesco Trapani, CEO of Bulgari, will join LVMH’s executive committee and assume the management of the LVMH enlarged watches and jewelry activities in the second half of 2011. Trapani will replace Philippe Pascal who will remain on the LVMH executive committee and given new responsibilities.
LVMH's Watches and Jewelry activities include the De Beers, TAG Heuer, Chaumet, Zenith and Hublot brands.
“The Bulgari Family, majority shareholder of the renowned Italian House established in 1884 by Sotirio Bulgari, has decided to join forces with the LVMH Group in order to reinforce, in accordance with its history, values, craftsmanship and identity, the long term development of the Bulgari Group,” LVMH said in a release.
According to Trapani, the development is a significant step for the family and the company, occurring at a time of strong revenue growth. “Our entrance into LVMH will allow Bulgari to reinforce its worldwide growth and to realize noteworthy synergies, in particular in the areas of purchasing and distribution.”