LVMH Buys Controlling Stake in Bulgari
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LVMH has acquired luxury brand Bulgari.
The LVMH group has welcomed yet another new addition.
After recently acquiring beauty brands like Ole Henriksen, the luxury conglomerate has scored a controlling stake in Bulgari in a deal worth an estimated 3.7 billion euros (about $5.1 billion), the Financial Times reports.
The family behind the Italian jewelry company—which just named Kirsten Dunst as the face of its Mon Jasmin Noir fragrance—is set to become the second-largest LVMH family shareholder after agreeing to exchange its 51 percent stake for 16.5 million LVMH shares.
The Bulgari clan will also gain two seats on the LVMH board, and chief executive Francesco Trapani will join the LVMH executive committee while overseeing the label’s watch and jewelry business.
Insiders, meanwhile, are optimistic that the new relationship will be less contentious than that of LVMH and Hermès, whose family has resisted the conglomerate’s buyout moves.
“We found in Bernard Arnault and the group he has built all the elements that are required to guarantee the long-term future of Bulgari,” said Paulo and Nicola Bulgari, the label’s chairman and vice chairman.
Get the full story from the Financial Times.
