India-based diamond and jewelry company Shrenuj & Company Limited announced the acquisition of US-based Simon Golub & Sons Inc. (SGS), which is one of the top five jewelry distributors in America. The deal is valued at US$22.7 million for acquiring majority stake in the 80-year-old company and is part of Shrenuj’s ever-expanding presence for its range of diamonds and jewelry in the United States.
Vishal Doshi, President-Business Development says, “This acquisition is keeping in line with our future strategy of getting straight to the retailer to build additional margins and have access to first hand information regarding change in fashion trends and consumer preferences. We will be using the massive distribution system of SGS to run various B2C marketing and branding programmes. Distributors with their service appeal will continue to be the mainstay of US jewellery business.”
Doshi also adds, “The jewellery business worldwide is witnessing consolidation at all levels. Major retailers are looking for economical and efficient manufacturing and product development partners. Indian players have truly become favorites on their western counterparts as possible partners and many such deals are likely in the near future.”
Andrew Harris, SGS President says, “Shrenuj shares our vision and values. In Shrenuj, we have found a team that we believe will take SGS to greater heights. The entire SGS team has agreed with pleasure to continue managing the business to provide continuity and growth in operations for SGS and for all its indenting partners.”
SGS closed 2006 with a turnover, including agency sales, of US$13 million.
In addition to the USA, Shrenuj has operations in India, China, Hong Kong, Japan, Germany, Switzerland, Belgium, Dubai, the UK and Mauritius.
Source : Diamond Intelligence