Bulgari Takeover 82% Costlier Than Hermes for LVMH: Real M&A

Six weeks after LVMH Moet Hennessy Louis Vuitton SA said it wouldn’t overpay for acquisitions, the world’s largest maker of luxury goods is now spending more than ever to purchase Bulgari SpA.

LVMH, which sells everything from Louis Vuitton bags to Dom Perignon champagne and Royal Van Lent yachts, agreed yesterday to pay 3.7 billion euros ($5.2 billion) for the Rome-based watch and jewelry maker in its biggest takeover in at least a decade, according to data compiled by Bloomberg. Including net debt, the deal values Bulgari at as much as 28.2 times earnings before interest, taxes, depreciation and amortization, higher than LVMH has offered for any other company and 82 percent more than it paid for a stake in Hermes International SCA in October.