Tiffany to buy out Little Switzerland

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Luxury jeweller Tiffany & Co announced yesterday it plans to acquire up to 55% of the shares of the travel retailer Little Switzerland that it does not already own

Tiffany, which currently owns 45% of the US Virgin Islands-based operator, said it plans to pay $2.40 a share, valuing the deal at approximately $23m.

Tiffany said it has agreed to acquire a 12% stake from Little Switzerland chairman Seymour Holtzman and his affiliates, including Jewelcor Management. The company plans to begin a tender offer for the remaining Little Switzerland shares at the specified price.

Little Switzerland, which sells luxury goods through its 17 stores in the Caribbean and Alaska, reported sales of $19.2m for the third quarter ended February 23, an increase of 0.1%. Profits were $165,000 reversing a year-earlier loss of $2.4m. Tiffany said it plans to operate Little Switzerland as a separate business unit.