Bvlgari Changed Home

Hermes is still holding back. LVMH has successfully bought Bvlgari.

In March 6th, Bvlgari (Bulgari SpA) announced that LVMH bought 51% of the world's third largest jewellery at a price of $5 billion 200 million.

The offer is

Prior to this, the PPR, the owner of Paris spring department store and the Swatch group, issued a request to Bvlgari.

Delubas Gerard fund manager Gerard Moulin said, "perhaps these competitors explained such a high purchase price."

Arnott's acquisition was carried out in a friendly way.

According to the Wall Street journal, LVMH will issue 16 million new shares to exchange.

The 53 year old Bvlgari CEO Francesco Trapani (Francesco Trapani) will be the director of LVMH watch and jewellery department, managing jewelry brands including Chaumet, Fred, DeBeers, and watch brands like Heuer and Yu.

"Shareholders of the Bvlgari family will directly participate in the management of the company."

Arnott also vowed that LVMH would protect Bvlgari's personality and culture.

Trapani responded that the Bvlgari family also regarded Arnott as a partner.

Bvlgari's new partner has never been a patient.

People familiar with the matter revealed that Arnott had been in this plot for ten years.

This smart guy has been waiting for Bvlgari to suffer setbacks.

His patience was rewarded.

Three years of economic crisis since 2008, Bvlgari's

In March 3, 2011, Arnott sat down with the Bvlgari family leader Paolo Bulgari and his nephew Trapani on the dining table at the skyline of Rome.

The lunch was so important that Arnott even turned up the Paris fashion week.

Although the Bvlgari family also claimed that the company would never sell in 2010, Arnott found a way of persuading Bvlgari shareholders: 3.5% of the shareholding was a surprise to Bvlgari shareholders. LVMH's stock was a good investment; the position of the director of the watch and jewelry department also made Trapani happy.

At that lunch, Arnott acted like a Santa Claus.

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Antonio Belloni, managing director of LVMH group, described the meal as: "you can feel that the atmosphere at that time was very good. This is our most important moment so far. It has brought us friendship with them."

Trapani is not stingy with his praise: "LVMH is the perfect partner."

Although it was so generous, Arnott never did the business of "sacrifice himself for others".

For the LVMH group, which sells bags, sells wine, sells clothes and even sells yachts, watches and jewellery has always been a weak link, contributing only 4.9% of the revenue to the group.

Its rival, the Swiss peak, has a profit of 20% in its jewelry brand, while Tiffany, the second largest jewelry retailer in the world, has an operating margin of 18%.

After buying Bvlgari, LVMH will narrow its gap in the watch and jewellery market, with the peak group and Swatch group.