French luxury goods company, LVMH, has taken control of Italy’s Bulgari in a major share transfer.
Under the share agreement, LVMH will issue 16.5 million shares in exchange for the 152.5 million Bulgari shares currently held by the Bulgari Family.
The Bulgari family (Paolo Bulgari, Nicola Bulgari and Francesco Trapani) will thus become the second largest family shareholder of the LVMH Group.
Announcing the restructure in a press statement, Paolo Bulgari (Bulgari chairman) and Nicola Bulgari (Bulgari vice chairman) said the family, which was the majority shareholder of the company established in 1884 by Sotirio Bulgari, has decided to join forces with the LVMH Group in order to reinforce “the long term development of the Bulgari Group.”
They said LVMH has all the elements required to “guarantee the long term future of Bulgari” including “the ability to gather into one powerful organisation different brands that can grow and develop while preserving both their identity and originality”, a culture “characterised by an unceasing quest for quality and excellence” and “a perfect harmony between family control of the capital … and an opening towards the stock market”.
Paolo and Nicola Bulgari will remain chairman and vice-chairman of the Bulgari board of directors while Bulgari CEO Francesco Trapani will join the executive committee of LVMH and manage the group’s watches and jewellery activities.
Trapani said Bulgari’s entrance into LVMH will “allow Bulgari to reinforce its worldwide growth and to realise noteworthy synergies, in particular in the areas of purchasing and distribution.”
“I am greatly honoured that the management of LVMH’s Watches and Jewellery activities, which include prestigious brands such as TAG Heuer, Chaumet, Zenith, Hublot, Fred and De Beers, has been entrusted to me.
“Bulgari and these brands will be able to invest and innovate even further to become the world leader in the high end segment.”