Bvlgari Changed To &Nbsp, And Arnott Bought "Harmony".

Bvlgari (BulgariSpA) announcement shows that LVMH bought 51% of the world's third largest jewellery at a price of $5 billion 200 million.

The offer is 28.2 times the price of Bvlgari EBITDA (profit before tax depreciation and amortization), which marks a record of the history of Bvlgari's acquisition. It is also the largest acquisition of LVMH President Bernard Arnott (BernardArnault) in the past 10 years - the last time it was in 1999. GUCCI The group offered a $6 billion 150 million bid.

Prior to this, the PPR, the owner of Paris spring department store and the Swatch group, issued a request to Bvlgari. Delubas GerardMoulin fund manager GerardMoulin 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 for 152 million 500 thousand shares of Bvlgari family's current holdings. Next, LVMH will buy shares of minority shareholders at Euro 12.25 per share. Bvlgari The family will become the second largest shareholder of LVMH, with a shareholding ratio of 3.5% and two seats on the board. The agreement reached between the two sides has been unanimously approved by the board of directors of the two group.

The 53 year old Bvlgari CEO Francesco FrancescoTrapani will take office. LVMH Director of watch and jewelry department, including jewelry brands such as Chaumet, Fred, DeBeers, and brand watches such as Heuer and Yu Po. "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. Arnott has been planning for ten years, people familiar with the matter said. This smart guy has been waiting for Bvlgari to suffer setbacks.

His patience was rewarded. In the three years since the economic crisis of 2008, Bvlgari's sales have dropped by 67%. Especially in 2009, it became extremely difficult, and Bvlgari lost $650 million. Arnott shot.

In March 3, 2011, Arnott sat down with the Bvlgari family leader PaoloBulgari 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.

AntonioBelloni, managing director of LVMH group, described the meal as: "you can feel that the atmosphere was very good at that time. This is the most important moment so far, and 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.