Luxury giant LVMH Moët Hennessy Louis Vuitton has become even bigger, with the recent purchase of Bulgari in a mega merger worth $2.6 billion.
Family owned Bulgari SpA agreed to sell their 50.4 percent stake to LVMH for 1.86 billion euros, or about $2.6 billion. As part of the deal, the Bulgari family will still have a strong influence in the company, getting two spots on the LVMH board of directors, and Paolo and Nicola Bulgari (formerly the chairman and vice-chairman of the company respectively) will remain chairman and vice-chairman of the Bulgari board.
"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," Paulo and Nicola Bulgari, chairman and vice chairman of the jeweler, said in a joint statement referring to the head of LVMH.
In addition, Bulgari CEO Francesco Trapani will join the executive committee of LVMH and take over the group's watch and jewelry division, replacing Philippe Pascal, who "will be given new responsibilities within the group," according to LVMH.
LVMH founder, chairman and CEO Bernard Arnault stated, "The alliance between my group and the Bulgari family is a perfect combination from all points of view as we share the same culture in terms of respect for identity and roots of the brands, quest for excellence, creativity and innovation."
"As is the case with LVMH, the Bulgari family shareholders are directly involved in managing the company," Mr. Arnault said. "They are entrepreneurs that know and excel in all aspects of the business."
LVMH is a fashion and luxury powerhouse, holding over 600 brands including Christian Dior, Fendi and Celine.
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