The acquisition of Tiffany & Co (TIF) by French luxury giant LVMH Moët Hennessy Louis Vuitton has been completed, ending the stock market listing of the jewelry specialty retailer. On december 30, 2020, Tiffany shareholders finally approved a $15.8 billion deal with France's LVMH. As agreed in October 2020, LVMH paid $131.5 per share, down from $135 in the original deal signed late 2019 by both luxury companies.
Tiffany last raised its quarterly dividend by 5.5 percent to $0.58 per share in 2019, at the time marking the 16th consecutive year of dividend increases by the jeweler. The interesting fact is that LVMH cut its dividend in 2020, ending more than 30 consecutive years without a cut. Actually LVMH had been raising its dividend in each of the past 11 years with double digit dividend growth from 2016 to 2019. In 2020 the dividend was cut by 20 percent during the COVID-19 pandemic, despite the company's stock price trading near all time highs at the end of 2020.
Tiffany & Co. is a jeweler and specialty retailer. The company has four reportable segments: Americas, Asia-Pacific, Japan and Europe. Tiffany's principal product category is jewelry and also sells watches, home and accessories products and fragrances. Charles Lewis Tiffany founded Tiffany's business in 1837. He incorporated Tiffany in New York in 1868. Tiffany became a public company in May 1987 and has paid a dividend every year since 1988. LVMH Moët Hennessy Louis Vuitton is represented in Wines and Spirits by a portfolio of brands that includes Moët & Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart, Mercier, Château d’Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de Mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes, Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia, Ao Yun, Château d'Esclans and Château du Galoupet. Its Fashion and Leather Goods division includes Louis Vuitton, Christian Dior Couture, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, RIMOWA, Patou and Fenty. LVMH is present in the Perfumes and Cosmetics sector with Parfums Christian Dior, Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, Benefit Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Fenty Beauty by Rihanna and Maison Francis Kurkdjian. LVMH's Watches and Jewelry division comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred and Hublot. LVMH is also active in selective retailing as well as in other activities through DFS, Sephora, Le Bon Marché, La Samaritaine, Groupe Les Echos, Cova, Le Jardin d’Acclimatation, Royal Van Lent, Belmond and Cheval Blanc hotels.