Tiffany & Company, the famed jewelry company and proud purveyor of $9,000 balls of silver yarn, has been acquired by LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury goods company, in a $16.2 billion deal that marries a storied American brand with a suite of high-end French labels.

The deal, which has been in the works for weeks, was said to be the largest ever in the luxury sector. It allows LVMH, whose brands include Dior, Givenchy, Fendi, Dom Pérignon and Bulgari, to further expand into the luxury jewelry market, while bolstering Tiffany as it tries to reinvent itself amid a shrinking demand for luxury goods.

"This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler," said Alessandro Bogliolo, the Chief Executive Officer of Tiffany, said in a statement. "As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values.”

The 182-year-old company, which is headquartered in NYC and has more than 300 locations worldwide, takes in about $4.4 billion in annual revenue, but has been struggling in recent years in both the U.S. and China markets, its two strongholds. A recent Wall Street Journal story noted that Tiffany executives in August warned that the protests in Hong Kong along with a global economic slowdown could flatten sales for the remainder of the year.

In recent years, Tiffany has been trying out new strategies to attract millennials. In January, the company announced an effort to shed light on the ethical origins of the company's diamonds and gems amid concerns about their links to violence and tyrannical regimes. Just last month, Tiffany announced the launch of its first-ever men's collection.

The flagship store on the corner of 57th Street and Fifth Avenue opened in 1940. It is currently in the beginning of a three year renovation. According to Bloomberg, the store accounts for as much as 10 percent of Tiffany's annual sales. The retailer has three other locations in New York City: Rockefeller Center, Soho and Wall Street.

Robin Abrams, a veteran New York City retail broker at Compass, told Gothamist that she did not expect the deal to shrink Tiffany's footprint in the city. If anything, she said, the new ownership will give the company "a little bit more strength" to negotiate its lease deals because LVMH can leverage its other luxury brands, which have a strong retail presence in New York City.

Tiffany, she said, is "an iconic brand that has been around a long time and has deep roots. It's a smart acquisition for LVMH."