LVMH is acquiring a majority stake in Platinum Invest Group, the parent company of French jewelry producers Orest and Abysse, with the goal of boosting the production of Tiffany products.
The acquisition will see Platinum Invest’s five workshops in Eastern Europe that employ 800 workers help accelerate the production of high-end jewelry produced under the Tiffany label, which LVMH also bought for $16 billion in 2021.
The deal would still allow Platinum Invest Group to continue manufacturing jewelry for other brands, alongside other LVMH labels such as Bvlgari and Chalet, according to Reuters. Bvlgari, for one, is also seeking to expand its production and has set a goal of doubling it by 2028.
LVMH’s decision to expand the production of Tiffany products is reportedly part of its plan to increase sales and boost margins with the launch of new products and store expansion.
In one such effort, the company plans to reopen Tiffany’s New York flagship on fifth avenue later this month.
The French fashion conglomerate’s acquisition follows similar efforts by other players in the luxury space that have recently sought to bring more of their production in-house to have tighter control over their supply chain.
Financial terms of the deal between LVMH and French public investment bank BPIfrance and private equity firm Andera Partners were not disclosed.
