PARIS, March 7 (UPI) -- French luxury goods conglomerate LVMH said Monday it is buying Italian jewelry and upscale merchandiser Bulgari in a deal valued at about $5.2 billion.
Both companies' boards approved the sale during the weekend.
LVMH, perhaps best known for its Louis Vuitton and Christian Dior brands, will issue 16.5 million shares in exchange for the 152.5 million shares held by the Bulgari family, which comprise about half the company. LVMH will offer about $17.13 a share for the remaining Bulgari shares outstanding.
The Italian family will become the second-largest family shareholder of LVMH Group.
Bernard Arnault, LVMH's founder and chairman, called the merger a deal made in heaven.
"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 identity and roots of the brands, quest for excellence, creativity and innovation," Arnault said in a release posted on the company's Web site.
Paolo and Nicola Bulgari will remain chairman and vice chairman of the Bulgari S.p.A. board, respectively, and the family will appoint two representatives to the LVMH board. Bulgari chief executive Francesco Trapani will join the LVMH executive committee.
"We found in Bernard Arnault and the group he has built all the elements that are required to guarantee the long term future of Bulgari ...," Paolo Bulgari said.
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