Gitanjali Gems acquires Samuels Jewelers Inc, USA

Gitanjali Gems Ltd has announced that the Company has acquired Samuels Jewelers Inc., the 10th largest jewelry chain in United States.

The Company has acquired 97% stake in this specialty retailer, which operates 97 stores spread across 18 states with current revenues equivalent to Rs 450 Crores. The acquisition is being financed through internal accruals and proceeds of the recently concluded US$ 110 million FCCB.

This is one of the first acquisition by an Indian jewellery Company in the organized US jewellery market, which constitutes a huge 35% of global jewelry market, making it a landmark step for the industry and a significant step towards moving up the industry value chain and will offer a range of synergies to the Company's existing operations. The Company will not only have access to a large US consumer base, but leveraging Samuels' existing retail infrastructure will give the Company control over the entire value chain in the jewelry business. Samuels' seasoned management and expert employees will also allow a smoother segue into the US market.

Samuels' Jewelers Inc., USA, has been acquired from its current majority owner and fund manager, DDJ Capital Management, LLC, a boutique investment manager, based in Waltham, Massachusetts, specializing in private equity and debt financings, as well as high yield and special situations investing, which currently manages approximately USD 3 billion on behalf of 79 institutional clients.

By way of this acquisition the Company has marked a crucial footprint in North American market & control over value chain, which will boost the Company's plans to expand its retail presence in India and abroad.

Source : Equity Bulls

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