LVMH to Acquire Bulgari After Agreeing to Buy Family Stake

LVMH Moet Hennessy Louis Vuitton SA plans to acquire Bulgari SpA for about 3.7 billion euros ($5.2 billion) to double the size of its watches and jewelry unit in what would be its biggest acquisition in at least a decade.

The largest luxury-goods company agreed to purchase the Bulgari family’s 50.4 percent stake for 1.87 billion euros in stock and will then make a tender offer for the rest, according to a joint statement distributed by the Italian Exchange today. The acquisition represents a 61 percent premium to Bulgari’s March 4 closing share price in Milan.