LVMH plans to Buy American Jeweler Tiffany & Co : The deal is the largest ever in the luxury sector

One month after the French luxury behemoth made news by submitting a $14.5 billion bid to buy iconic American jeweler Tiffany & Co., the holding company has finally got its brand, according to the Financial Times. LVMH has reportedly “clinched” the deal after upping its offer to $16.2 billion.

Confirmed in a press release Monday morning, the sale will see the luxury holding company buy Tiffany, best known for its diamond engagement rings, for $135 per share in cash. That’s a significant increase over the $120 per share offer LVMH initially put forward.

The purchase price comes out to an equity value of about $16.2 billion, which represents a 37 percent premium over the jeweler’s stock price ($98.55 per share) the day before the news of the initial bid went public. The deal reportedly includes $350 million in net debt.

“We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons,” said a “delighted” Bernard Arnault, LVMH chairman and CEO, in the statement.

The deal is the largest ever in the luxury sector, according to the Financial Times.