The world’s largest luxury conglomerate LVMH Moet Hennessy Louis Vuitton SA has officially taken over the family-owned Bulgari for $6 billion.
According to Reuters, Bernard Arnault, the LVMH chairman, may have been interested in acquiring Bulgari for a decade. Arnault’s offers were rejected as recently as a year ago when he failed to win over the Trapani family, the controlling shareholders.
As a result of the acquisition, Arnault has promoted Bulgari Chief Executive Francesco Trapani to lead the LVMH’s watch and jewelry department, which also oversees TAG Heur, Dior, and Chaumet. This latest move also gives LVMH a competitive edge over jewelry big names Cartier and Tiffany. Founders Paolo and Nicola Bulgari will also be on the board of directors with Trapani.
“I have been at Bulgari for 27 years,” Trapani said during a Monday, March 7, conference call. “I have met everybody in the luxury industry, so I had possibilities with all these people. ... LVMH was the ideal partner. I like being the future head of the group’s watch and jewelry (division), but also (LVMH shares) it is a good investment.”
Bulgari was originally established in 1884 by Greek immigrant Sotirios Bulgari based in Rome and gained global prestige when the famous Hollywood actress Elizabeth Taylor wore one of its diamond and emerald broach designs on the day of her wedding to Richard Burton.
Bulgari expanded its business to New York, Paris, Geneva, and Monte Carlo in 1970, and subsequently diversified its line into perfumes in 1993 and also owns luxury branded accessories and hotels.
“It’s more the fruits of a coming together of management styles, of brand development, than a financial question. ... [An] ideal arrangement at every level,” said Arnault.
LVMH has made international headlines recently by buying large amounts of stock in Hermès, the 173 year-old high fashion house and renowned maker of Birkin bags.
The Hermès family does not seem to welcome the king of haute couture’s interest in its company and considers the LVMH 20 percent shareholder ownership in Hermès to be hostile.
According to Reuters, Bernard Arnault, the LVMH chairman, may have been interested in acquiring Bulgari for a decade. Arnault’s offers were rejected as recently as a year ago when he failed to win over the Trapani family, the controlling shareholders.
As a result of the acquisition, Arnault has promoted Bulgari Chief Executive Francesco Trapani to lead the LVMH’s watch and jewelry department, which also oversees TAG Heur, Dior, and Chaumet. This latest move also gives LVMH a competitive edge over jewelry big names Cartier and Tiffany. Founders Paolo and Nicola Bulgari will also be on the board of directors with Trapani.
“I have been at Bulgari for 27 years,” Trapani said during a Monday, March 7, conference call. “I have met everybody in the luxury industry, so I had possibilities with all these people. ... LVMH was the ideal partner. I like being the future head of the group’s watch and jewelry (division), but also (LVMH shares) it is a good investment.”
Bulgari was originally established in 1884 by Greek immigrant Sotirios Bulgari based in Rome and gained global prestige when the famous Hollywood actress Elizabeth Taylor wore one of its diamond and emerald broach designs on the day of her wedding to Richard Burton.
Bulgari expanded its business to New York, Paris, Geneva, and Monte Carlo in 1970, and subsequently diversified its line into perfumes in 1993 and also owns luxury branded accessories and hotels.
“It’s more the fruits of a coming together of management styles, of brand development, than a financial question. ... [An] ideal arrangement at every level,” said Arnault.
LVMH has made international headlines recently by buying large amounts of stock in Hermès, the 173 year-old high fashion house and renowned maker of Birkin bags.
The Hermès family does not seem to welcome the king of haute couture’s interest in its company and considers the LVMH 20 percent shareholder ownership in Hermès to be hostile.
