LVMH announces the acquisition of Platinum Invest Group

The world's leading luxury goods company LVMH announced in mid-April that it has acquired the Platinium Invest group, which includes Orest and Abysse, two leading jewelry producers in France. With this transaction, the LVMH group aims to strengthen its production capacity in France and sustain its growth in the fine jewelry market.

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Andera Partners and Bpifrance sell Platinum Group

Platinum Invest is the European leader in jewelry production for the major luxury houses. The group includes Orest (an independent designer and manufacturer of internationally renowned jewelry created in 1963) and Abysse (founded in 1982, the French leader in the design and manufacture of fine jewelry pieces). In addition, the Platinum Invest group now has a network of five workshops in eastern France and employs nearly 800 craftsmen and employees.

After having tripled in size in 4 years and largely exceeded its growth objectives set by its management team and shareholders, the group decided to look for an industrial partner capable of guaranteeing the group's sustainability and continued growth.

LMVH has acquired a majority stake in Platinum Invest

The group continues its vertical acquisition strategy in fine jewelry. After the acquisition of Tiffany & Co, LVMH has acquired a majority stake in the jeweler Platinium Invest from the funds Andera Partners, Bpi France, and other shareholders. Through this acquisition, the number one luxury goods company hopes to strengthen its commitment to the highest level of quality. In addition, the acquisition of the French jewelry manufacturer will allow the LVMH group to strengthen its production capacity in France and support the group's strong growth. The acquisition, which is subject to the usual regulatory approvals, is expected to be completed by the end of summer 2023.

The group continues its vertical acquisition strategy

A vertical acquisition strategy consists of developing new activities by extending into its own sector, either upstream (for example, in the case of a retailer who would like to control the entire production chain) or downstream (for example, a producer who would like to process his products himself and then sell them to avoid the multiplication of intermediaries).

By acquiring Platinum Invest, LVMH is also acquiring the jewelry manufacturer's five workshops located in eastern France. These workshops will continue to supply their current customers, while working with other subsidiaries of the LVMH group, including the Tiffany & Co brand, which was acquired by the group a little over two years ago.

With this strategy, the world's number one luxury goods company wants to increase its production capacity in France and strengthen its offering in fine jewelry. In addition, LVMH wants to meet the growing demand of its customers.

Hard hit by the closure of stores and not very receptive to e-commerce, jewelry is one of the luxury segments that has suffered the most from the consequences of the health crisis. But since the end of the health crisis, sales have continued to increase.

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A look back at the acquisition of Tiffany & Co

Founded in 1837 in New York, Tiffany & Co. is an American jewelry and tableware company, famous for its innovative jewelry creations.

As the world's second largest jewelry brand after Cartier, LVMH could not let Tiffany fall into the hands of its competitors.

Initially, the deal was negotiated before the Covid-19 pandemic, which disrupted the global economy. LVMH wanted to obtain a readjustment, linked to the uncertain effects of the health crisis on the business of the famous American jeweler. Then the shareholders of Tiffany, meeting in general assembly, had accepted the proposal of repurchase by LVMH, revised downwards. Indeed, after two months of intense negotiations, the French luxury group had obtained the agreement of Tiffany's board of directors to modify the terms of the merger agreement with the New York jeweler at the purchase price of 131.50 dollars (112 euros) per share.

A strategy that has paid off for its CEO Bernard Arnault. Indeed, during the presentation of annual results last January, the French entrepreneur and billionaire had stressed that "Tiffany will exceed for the first time the billion dollars of current operating income.

The acquisition of Platinum Invest is an important step for Tiffany & Co. and will allow the brand to reinforce its commitment to the highest level of quality, while expanding its production capacity to meet the growing demand of its customers.

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