Gitanjali Gems buys US co
Gitanjali Gems Ltd, a Rs 2,500-crore conglomerate, has acquired US-based Samuels Jewellers Inc and the country’s eighth biggest jewellery retailer.
The company has acquired a 97 per cent stake in the speciality retailer operating 97 stores spread across 18 States for Rs 100 crore and will be putting in another Rs 100 crore as working capital. The acquisition is being financed through internal accruals and proceeds from the recently concluded $110 million FCCB issue. The stake has been acquired from the majority owner and fund manager, DDJ Capital Management, LLC, a boutique investment manager specialising in private equity and debt financing. Samuels Jewellers has reported net sales of $97.16 million in 2006, a 1.31 per cent growth over last year.
The acquisition is expected to add Rs 500 crore to the topline and Rs 30-40 crore to the bottom line of Gitanjali Gems Ltd by December 2007.
The acquisition will help Gitanjali access the large US customer base accounting for 35 per cent of the global jewellery market.
The stock price of Gitanjali closed at Rs 221.35 on Wednesday against its previous close of Rs 213.95.
Source:
