LVMH the French luxury conglomerate, said Monday that it would take control of Italy’s Bulgari in an all-share deal, adding another high-end brand to its formidable stable in a deal worth 3.7 billion euros.The Bulgari family has agreed to exchange its 51 percent controlling stake in the jeweler for 16.5 million LVMH shares, making it the second-largest family shareholder in the group. The family will also gain two seats on LVMH’s board, the company said.
“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.
Bulgari’s chief executive, Francesco Trapani, whom Mr. Arnault called “the driving force behind Bulgari’s development over the last 20 years,” will join LVMH’s executive committee, as well as lead the company’s expanded watches and jewelry business.
LVMH to Take Control of Italy’s Bulgari
For Bulgari, LVMH Deal Paves Way To Growth
LVMH bags jeweller Bulgari in $5.2 billion deal