Paris (AFP)

The takeover of Tiffany by the world number one in French luxury LVMH has been finalized for an amount of 15.8 billion dollars, a record transaction in the luxury industry, and LVMH announced on Thursday a reshuffle of the management of the American jeweler .

Boss Alessandro Bogliolo will be replaced by Anthony Ledru, the two companies said Thursday in a joint statement.

Mr. Bogliolo will be leaving Tiffany on January 22.

Anthony Ledru, who takes office on Thursday, was previously Deputy Managing Director in charge of global commercial activities at Louis Vuitton, LVMH's flagship brand.

He was previously one of Tiffany's North American executives from 2013 to 2014.

Alexandre Arnault, son of the CEO of LVMH Bernard Arnault and who until now worked for the briefcase maker Rimowa, of which he had taken the reins in early 2017 after having launched and then managed the acquisition by LVMH, becomes the executive director, products and communication of the famous New York jeweler, immortalized in the film "Breakfast at Tiffany's" with Audrey Hepburn.

Besides Alessandro Bogliolo, artistic director Reed Krakoff and deputy general manager of products and marketing Daniella Vitale will also be leaving Tiffany, "after a short period of transition".

"We are confident in Tiffany's ability to accelerate its growth, innovate and remain the most desirable jewelry brand," said Bernard Arnault, quoted in the press release, thanking Alessandro Bogliolo and his team for "their work these last three years, especially during the difficult period that the world is going through ".

"I am happy to return to Tiffany, the most iconic American luxury brand, which I have admired for so long," said Anthony Ledru.

Alessandro Bogliolo, for his part, underlined his pride in the work "accomplished together over the past three years", saying he was "convinced that Tiffany will shine under the leadership of LVMH".

- New marriage contract -

On December 30, the shareholders of Tiffany had given their approval to the proposed union with LVMH, a giant with some 70 houses including Louis Vuitton, Dior, Céline, Bulgari, Hennessy, Dom Perignon ...

The engagement was announced in November 2019, in a buoyant economic context, before being broken off in September 2020 in the midst of a pandemic.

The economic crisis has cost Tiffany dear, with a loss of $ 65 million in February-March-April 2020, but the group had nonetheless distributed substantial dividends to its shareholders.

In September 2020, LVMH announced that it was "no longer in a position" to buy "the American jeweler" as is ", speaking of a" succession of events likely to weaken the operation ".

He spoke of Tiffany's mismanagement during a pandemic and a request from the French government to postpone the acquisition, in the midst of a trade dispute between the United States and the European Union.

Tiffany and LVMH then clashed in the legal field in the United States, the first accusing LVMH of having dragged out regulatory proceedings, the second responding to the same American court.

Appointment had been set for January 5, 2021 for a trial.

But, at the end of October 2020, the two groups agreed on a price revised down to $ 131.50 per share against $ 135 originally, a saving of $ 425 million, and the lawsuits were dropped.

On January 5, Tiffany announced “record” sales for the holiday season (November 1 to December 31, 2020), up 2% from the previous year.

The company was driven by a boom in internet sales (+ 80%) and in the Asia-Pacific region (+ 20%).

LVMH, thanks to the jump in Fashion and Leather Goods sales and the dynamism of Asia, had limited erosion in Q3 2020 and exceeded expectations by reaching sales of 11.955 billion euros between July and September 2020 (-7% organic data).

Tiffany will be withdrawn from the New York Stock Exchange, but LVMH has not yet said how it plans to transform the American jeweler, which has suffered in recent years from competition from jewelers valued by "millennials" (17-34 years) .

© 2021 AFP