International luxury group LVMH has plans to overhaul the design team of jewellery brand Tiffany & Co., ahead of a makeover, according to Reuters. It is added that this makeover will be expected to appeal to young shoppers and Asian customers, according to analysts. This comes after LVMH concluded its US$15.8 billion acquisition of the Tiffany brand.
According to a press release by LVMH, the acquisition of Tiffany & Co. will deeply transform LVMH’s watches and jewellery division, and complement LVMH’s 75 distinguished maisons.
With the acquisition, Alessandro Bogliolo, the current CEO of Tiffany & Co., will depart the company after 22 January. Tiffany's executive vice president and chief brand officer Daniella Vitale and its chief artistic director Reed Krakoff will also exit the company after a short transition of responsibilities.
In their places, LVMH has appointed two executives from Louis Vuitton to lead the new Tiffany brand. Anthony Ledru, previously executive vice president, global commercial activities at Louis Vuitton as CEO of Tiffany, as well as Michael Burke, the chairman and CEO of Louis Vuitton, as the chairman of Tiffany's board of directors. It has also appointed Alexandre Arnault, previously CEO of RIMOWA, as executive vice president, product and communications of Tiffany.
The merger of the two companies also comes after one year of dispute. LVMH first said it has reached an agreement for a merger with Tiffany and Co in November 2019. The initial talks of merger transaction held an equity value of approximately US$16.2 billion. Both brands then raised disagreements over the course of 2020, and after multiple discussions, the merger price was modified in October 2020.
Commenting on the acquisition, Bernard Arnault, chairman and CEO of LVMH, said he is "pleased" to welcome the team into LVMH. "We are committed to supporting Tiffany, a brand that is synonymous with love and whose Blue Box is revered around the world, with the same dedication and passion that we have applied to each of our prestigious maisons over the years. We are optimistic about Tiffany’s ability to accelerate its growth, innovate and remain at the forefront of our discerning customers’ most cherished life achievements and memories."
Arnault also thanked Bogliolo and his team for their dedication to Tiffany and their work over the past three years.