Haute Fashion: Bulgari Unites with LVMH Group
A solid product lineup and savvy business mind-set are key components in the success of a business; but it’s the tradition-rich history behind the family owned and operated, Bulgari brand that has driven the jewelry empire to such astronomical heights. Since its 1884 inception, the Bulgari name has been synonymous with the kind of ultimate luxury that would make the brand appealing to someone like, say, LVMH, perhaps. To that end, it’s no surprise that the LVMH Group (the same company that owns Louis Vuitton, amongst many other fashion, jewelry, beauty, and spirits brands, globally) announced their recent acquisition of Bulgari, making the Italian jewelry house the newest member of the elite list of LVMH-owned labels.
As of Sunday, the Bulgari family relinquished control of their 152.5 million shares and hands over the reigns to the heavies at LVMH. This leaves the Bulgari’s holding on to some 16.5 million shares, thus ranking second in terms of most shares held by a family within the LVMH Group. The Public Purchase Order will list the purchase of each share at €12.25.
Paolo and Nicola Bulgari, Grandsons of Bulgari creator Sotirios Bulgari, also know as Sotirios Voulgaris; will remain Chairman and Vice-Chairman of the company and Francesco Trapani, nephew; will stay on board as the companies CEO. Trapani will also join the LVMH executive committee and manage the LVMH watches and jewelry division during the second half of 2011.
This marriage, amicable and welcome on both ends, is solidified in both parties’ belief in the mutual benefits.
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