Sandra‘s Closet

Breaking news for all gem lovers. Tiffany & Co. acquires an exceptional 80-carat diamond to reimagine its historic 1939 World’s Fair Necklace. Expected to be its most expensive piece ever, Tiffany will unveil the diamond necklace in 2022 when the doors of its transformed Fifth Avenue flagship store reopen, making history once again, just as the original necklace did nearly a century ago when it debuted at the World’s Fair in Queens, New York.

In August 2020, OMA unveiled images of the newly transformed Tiffany Fifth Avenue Flagship Store to open in 2022.

The original aquamarine design has been modernized with an extraordinary oval diamond of over 80 carats, the largest diamond ever offered by Tiffany and eclipsed only by the Tiffany Diamond, which famously is not for sale.

«What better way to mark the opening of our transformed Tiffany flagship store in 2022 than to reimagine this incredible necklace from the 1939 World’s Fair, one of our most celebrated pieces when we opened our doors on 57th Street and Fifth Avenue for the first time,» said Victoria Reynolds, Tiffany & Co. Chief Gemologist. «The new necklace perfectly reflects our brand heritage as a New York luxury jeweler, whose founder was known as the ‘King of Diamonds‘.»

Tiffany & Co. 80-carat, D color, internally flawless diamond inspired by necklace from the 1939 World’s Fair.

The breathtaking center stone – an over-80-carat, D color, internally flawless oval diamond – is not only very rare, it is a symbol of Tiffany’s industry-first approach to diamond traceability. Responsibly sourced in Botswana, Africa, the diamond will be set by Tiffany artisans in NYC.

Photograph of the aquamarine and diamond necklace from the 1939 World’s Fair_Tiffany & Co. Archives.

The original necklace’s sizable aquamarine and exceptional diamond forms entranced the millions who came to admire the international spectacle. With its forward-looking theme, «Dawn of a New Day,» the 1939 World’s Fair promised a glimpse into «the World of Tomorrow.» The fair’s intention was to inspire, in its over 44 million visitors, the dream of a better and more effervescent tomorrow. Tiffany’s masterpiece did just that – setting the stage for the opening of its iconic flagship store on 57th Street and Fifth Avenue the following year, in 1940 – foreshadowing what will be a similarly historic moment for the brand in 2022.

In 1878, the company purchased the famous Tiffany Diamond, an immense canary yellow stone from the new South African deposits. Once cut, the diamond weighed 128.54 carats.

Tiffany has acquired many rare and remarkable gemstones for its jewelry designs in its 183-year history, including the legendary Tiffany Diamond, one of the world’s largest and finest fancy yellow diamonds, as well as the Hooker Emerald, now exhibited at the Smithsonian and the Mazarin Diamonds, purchased by Tiffany at the auction of the French Crown Jewels.

LoL, Sandra

The massive 75.47-carat Hooker Emerald had been auctioned to Tiffany & Co, which initially set it in a tiara. Despite its beauty, the tiara remained unsold for decades. In 1950, the emerald was re-set into a brooch that included matching earrings. Five years later, the brooch was purchased by Janet Annenberg Hooker. In 1977, she donated it to the Smithsonian.

Photos: © Tiffany & Co. and © OMA

Last Thursday, I had an interesting zoom event with BoF Professional LIVE about unpacking the LVMH-Tiffany saga. The largest acquisition in the history of the luxury goods sector had collapsed, setting up what could be the industry’s biggest M&A battle of all time. Experts to laid out what could happen next and they were pretty right. Robert Williams, Europe Correspondent BoF; Brian Quinn, Law Department Professor, Boston College; Oliver Chen, Managing Director & Senior Equity Research Analyst, Cowen and Company; and Lauren Sherman discussed all possibilities. Interesting to know is that LVMH is part of a group of investors who, together, hold a minority interest in BoF. However, all investors have signed shareholders’ documentation guaranteeing complete editorial independence.

Such an interesting talk last week at BoF

Coming back to the luxury deal of the century. Jewelry is still a fruitful space to look for. It makes sense that LVMH wants to expand in this sector. Tiffany, that has no family shareholders, which is another advantage, is strong in the bridal sector and in China, watches are about 3%. There a lot of strategic synergies between the companies. It was unlikely that LVMH wanted to go to court where you have to be very transparent about your business. It was more likely a strategic move to get a good price, something Bernard Arnault, who built his fortune on acquiring companies, appreciates. It was the first time he wanted to get out of a deal, which could have hurt his reputation as a savvy buyer.

Today, both parties announced that they have concluded an agreement modifying certain terms of their initial agreement (the «Merger Agreement») to reflect a purchase price of $131.50 in cash and to reduce closing conditionality. Other key terms of the Merger Agreement remain unchanged. Tiffany and LVMH have also agreed to settle their pending litigation in the Delaware Chancery Court. This ends weeks of corporate fighting and saves the French luxury conglomerate over $400 million on the original price of $16.2 billion agreed before the worldwide pandemic hit. The deal is now set to close early next year, pending shareholder and regulatory approvals.

Roger N. Farah, Chairman of the Board of Directors of Tiffany, commented. «We are very pleased to have reached an agreement with LVMH at an attractive price and to now be able to proceed with the merger. The Board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing.»

Bernard Arnault, President and CEO of LVMH, commented: «This balanced agreement with Tiffany’s Board allows LVMH to work on the Tiffany acquisition with confidence and resume discussions with Tiffany’s management on the integration details. We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees during this exciting next chapter.»

Congrats to the newly weds!

LoL, Sandra

Photos: Courtesy of LVMH / Tiffany