French Luxury giant Louis Vuitton buys Tiffany for $16bn.

Luxury group LVMH acquires Tiffany for $16.3 billion USD, marking the largest ever takeover for global luxury goods brand.

According to USA Today, the new deal values each Tiffany share at $135 in cash and is higher than the initial offer of $120 a share – which valued the business at $14.5bn. Tiffany is trying to transform its brand to appeal to younger and more digital shoppers and could use an owner with deep pockets to help expand its business. When the deal was announced, shares in Tiffany rose almost 6% in premarket trading in New York, while LVMH was up 2% in Paris.

Tiffany, known for its delicate jewelry, distinctive blue boxes, and being feature in the 1961 Audrey Hepburn film Breakfast at Tiffany’s, says the deal will ensure its long-term sustainability after being harshly hit by lower spending by tourists and a strong US dollar. Founded in 1837, it employs more than 14,000 people and operates about 300 stores – 12 of them in the UK.

“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 [brand houses],”, said LVMH’s billionaire owner Bernard Arnault, according to BBC, “We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come.”

LVMH has 75 brands, 156,000 employees and a network of more than 4,590 stores. Its other brands include Kenzo, Tag Heuer, Dom Pérignon, Moet & Chandon, and Christian Dior.

Tiffany chairman Roger Farah said the board had concluded this deal “provides an exciting path forward with a group that appreciates and will invest in Tiffany’s unique assets and strong human capital”.