LVMH and Bulgari form alliance

Published: 7-Mar-2011

Luxury brands group to gain 152.5 million Bulgari shares


Bulgari, the Italian jewellery, watch, accessories and fragrance house, is the latest company to join forces with the LVMH Group in order to reinforce its long-term development.

Both groups’ boards of directors have unanimously approved the contributing of the Bulgari family’s majority shareholding in Bulgari SpA to LVMH. Upon the completion of the share transfer process, LVMH will issue 16.5 million shares in exchange for the 152.5 million Bulgari shares currently held by the Bulgari family, who will become LVMH’s second largest family shareholder.

LVMH will also submit a public purchase offer at the price of €12.25 per share on the shares held by minority stockholders, in accordance with Italian stock exchange regulations.

The current chairman and vice chairman of the Bulgari SpA board of directors – Paolo and Nicola Bulgari – will retain their positions, while the Bulgari family will also be entitled to appoint two representatives to the LVMH board of directors. In addition, Francesco Trapani, Bulgari’s ceo, will join the executive committee of LVMH and will assume the management of LVMH’s enlarged watches and jewellery activities in the second half of 2011. Philippe Pascal, who currently heads these activities, will remain on the LVMH executive committee and will be given new responsibilities.

“The alliance between my group and the Bulgari family is a perfect combination from all points of view as we share the same culture in terms of respect for the identity and roots of the brands, quest for excellence, creativity and innovation,” comments LVMH’s Bernard Arnault.

Paolo and Nicola Bulgari add: “We found in Bernard Arnault and the group he has built all the elements that are required to guarantee a the long term future of Bulgari: the ability to gather into one powerful organisation different brands that can grow and develop while preserving both their identity and originality.”

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