After several weeks of negotiations, LVMH has sealed the deal to buy Tiffany & Co. in a US$16.2 billion, all-cash deal.

Despite several years of listless growth and a declining share price – though its current management was in a midst of engineering a turnaround – Tiffany & Co. is the biggest acquisition ever in the luxury goods industry.

The French luxury conglomerate, which owns Louis Vuitton and Christian Dior, is paying US$135 a share, about 35% above the last traded price before news of the takeover broke.

With the acquisition of the storied American jeweller, LVMH strengthens its presence in the “hard” luxury business of jewellery and watches, a segment traditionally dominated by its Swiss rival Richemont, the owner of Cartier, Van Cleef & Arpels, and most recently, Buccellati.

The addition of Tiffany’s to its 75-strong stable of brands, which includes watchmakers like Hublot and TAG Heuer, will also help LVMH grow its presence in China and the United States, where the jeweller’s baubles are popular.

And the deal also means Tiffany’s well regarded chief executive, Alessandro Bogliolo, returns to LVMH, where he was once the chief operating officer at Bulgari.