And in the end, he won the bet. French luxury giant LVMH was not alone in taking a close look at Bulgari. But so far, the Italian jeweler had resisted all the sirens. A determination that Bernard Arnault, CEO of LVMH and the world's No. 1 luxury, finally came to end. His group has acquired, on Monday, 51% of Bulgari in a transaction valued at 1.84 billion euros. And to mourn its independence, the Bulgari family has received 16.5 million shares LVMH, or 3.5% of the group.
The French group hopes through this acquisition to double its revenue in an area where it is still not number 1.Bulgari should enable it to achieve a turnover of 1.8 billion euros in 2011 in the jewelry against 985 million euros in 2010.
Paolo and Nicola Bulgari for, respectively President and Vice-Chair of the Italian family, the benefits are less obvious. They put forward "guarantees for the future" made by LVMH to justify the operation. But it is mainly a reversal of unexpected situations.
A climb that quickly attracted the covetous
The house has always prided itself Bulgari to be one of the last major family-owned businesses in the world of luxury. In 2007, its CEO, Francesco Trapani told the daily La Tribune that his "business [was] not for sale.It has never been and we do not expect to sell. "
Founded in 1884 in Rome, Bulgari has managed to become the third largest jewelry brand in the world behind Cartier (part of the world's No. 2 luxury Richemont) and Tiffany. Climb to the podium that is actually relatively recent. In the 1980s, Bulgari had only five stores and 80 employees. Over 30 years later, Bulgari can boast of having 3300 employees and sells products in more than 250 shops. Floated in 1995, the title of the Roman house gained nearly 900% of its value.
In these circumstances it is natural that the jeweler has aroused the envy of all the industry heavyweights.Especially in 2006, Bulgari has for the first time exceeded the billion turnover. They all declared their love to the Italian group. PPR (Pinault Printemps Redoute), the French rival LVMH, Bulgari have sought to acquire in 2006. A year later, it was the turn of Swatch to declare interest. While Richemont who has never ruled on the case Bulgari, the Swiss group, which owns Cartier, could hardly stay out of negotiations on the fate of his Italian rival.
Expansion halted by 2009
But until then had always preferred Bulgari continue to grow alone.Spurred by Francesco Trapani, CEO since 1984, the Italian company has successfully launched, diversify in perfumes, leather goods and even luxury hotels (in partnership with the Marriott group).
Until the 2008 financial crisis, Bulgari seemed not to have known of missteps. But in 2009, the company posted a net loss - its first since 1995 - from 1.38 million. A bad year that Bulgari has placed on the account of a broad expansion of its distribution started before the crisis erupted.
It is perhaps this reversal of fortune that LVMH has decided to take action.Perhaps also the desire to prove to another family business coveted Hermes, the companies that seem attached to their independence may also eventually be seduced.
