LVMH, the world’s leading luxury group, has made a significant announcement by acquiring a majority stake in Platinum Invest, a prominent French-based jewelry group. This acquisition encompasses two well-known jewelry manufacturers, namely Orest and Abysse. While the financial details of the transaction remain undisclosed, the deal was closed with Andera Partners, Bpifrance, and other shareholders.
The primary motive behind LVMH’s acquisition of Platinum Invest is to bolster their owned jeweler, Tiffany. This move is aimed at strengthening Tiffany’s production capacity in France and supporting its rapid growth in the fine jewelry sector. During the group’s annual results presentation, CEO Bernard Arnault highlighted that he expects Tiffany to exceed $1 billion in current operating income for the first time.
Orest, a part of the Platinum Invest group, has become a major player in the jewelry production industry in Europe since its establishment in 1963. The company supplies luxury houses and also offers its own line of jewelry, including rings, necklaces, and bracelets. Orest is particularly renowned for its expertise in crafting wedding rings in France. With specialization in various jewelry production processes like casting, milling, gem-setting, and polishing, Orest has garnered significant recognition.
In 2018, Andera Partners and Bpifrance acquired a majority stake in Orest when its turnover stood at 50 million euros. The integration of Orest under the newly formed holding company, Platinum Invest, resulted in considerable growth, witnessing an annual increase of over 25%. To further solidify its position, Platinum Invest acquired Abysse, a high-end jewelry manufacturer known for its artisanal know-how, in 2022.
Thanks to the inclusion of Abysse, Orest’s turnover has now reached nearly 140 million euros. Currently, Platinum Invest operates five workshops located in the Est region of France and employs nearly 800 artisans and personnel. These skilled teams will collaborate with Tiffany & Co.’s design studio in New York to create exceptional jewelry pieces. Besides catering to their existing customers, the workshops will develop products for other jewelry houses within the LVMH group. Furthermore, the acquisition offers an opportunity for collaboration between the Orest training school and the LVMH Institute of Excellence in Crafts.
Anthony Ledru, president and CEO of Tiffany & Co., expressed his enthusiasm regarding the acquisition, as he views it as a significant milestone for the company. Ledru believes that this move will strengthen their dedication to maintaining the highest quality standards and expand their production capacity to meet the increasing demands of customers. The completion of the acquisition is subject to customary regulatory approvals and is expected to take place before the end of summer 2023.
Interestingly, this acquisition follows LVMH’s recent sale of the Vendorafa Lombardi brand, from their watch and jewelry division, to Italian jeweler Gismondi 1754. LVMH’s strategic moves in the luxury jewelry sector continue to consolidate their position as a leading force in the industry.
(Useful Links:
– LVMH Acquires Majority Stake in Platinum Invest
– About Tiffany & Co.)
