Japanese Firm Increases Stake in Tiffany & Co.

A Japanese department store group has purchased additional shares of Tiffany & Co., increasing its stake in the famed jewelry company from 3% to 13%, Tiffany said Thursday.

Mitsukoshi Ltd., the principal distributor of Tiffany products in Japan, agreed to buy 1.5 million additional Tiffany shares, said William R. Chaney, Tiffany’s chairman.

“We welcome Mitsukoshi as a significant investor,” Chaney said in a statement. “Their investment strengthens and confirms the community of interest which our two companies have shared since 1970.”

By agreement, Mitsukoshi’s stake in Tiffany many not exceed 19.99% of shares outstanding, Tiffany said.

Mitsukoshi bought the shares from General Electric Capital Corp., a unit of General Electric Co. GE Capital acquired the shares when it helped fund the management-led buyout of Tiffany from Avon Products Inc. in 1984. It will continue to hold about 750,000 of the 2.25 million shares it now holds.

“We are excited about this investment, which reflects our confidence in Tiffany’s management group and our optimistic view toward their continued pursuit of many worldwide business opportunities,” said Yoshinki Sakakura, president and chief operating officer of Mitsukoshi.

Mitshukoshi operates 19 department stores in Japan and other stores elsewhere in Asia and in Europe and the United States.

In Japan, it sells Tiffany merchandise through boutiques in its stores and through hotels. It also distributes Tiffany products in Hong Kong and Hawaii.

In the fiscal year ended Jan. 31, Mitshukoshi bought about $26 million worth of Tiffany goods. During that same period, Tiffany had worldwide sales of more than $290 million.