Emerald Expositions Acquires Owner of Antique Jewelry Fairs

The Las Vegas Antique Jewelry & Watch Show is one of the tradeshows being acquired. Photo credit: Anthony DeMarco

Tradeshow and exposition company, Emerald Expositions, Inc., has acquired George Little Management LLC for $335 million, according to a joint statement from the two companies.

GLM, based in White Plains, NY, owns and operates approximately 25 tradeshows and expositions in five markets, including seven luxury antique fairs. They are: Armory Antique Show, LA Antique Jewelry & Watch Show, Las Vegas Antique Jewelry & Watch Show, Miami Beach Antique Jewelry & Watch Show, Miami National Antique Show, New York Antique Jewelry & Watch Show, Pier Antique Show and The Original Miami Beach Antique Show. The company has approximately 130 employees and operates out of six U.S. offices.

Emerald Expositions, San Juan Capistrano, Calif., owned by a Toronto-based private equity firm, Onex Partners III, was formerly Nielsen Expositions (owned by Nielsen Holdings N.V.), which owns and operates 65 tradeshows and conferences in nine markets. Onex acquired Nielsen in June and changed its name Emerald Expositions. That acquisition included the jewelry tradeshows Couture Show in Las Vegas, JA New York, JA Special Delivery New York, and the online jewelry publication, National Jeweler.

The transaction is anticipated to close in January 2014, subject to customary regulatory approvals and other adjustments. The acquisition will be funded with approximately $200 million of debt and a $140 million equity investment from Onex Partners III. 

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PPR Acquires Chinese Fine Jewelry Brand Qeelin

On Wednesday in New York, François-Henri Pinault, chairman and CEO of PPR, told me he was in the market for more jewelry and watch brands for the luxury portion of the international holdings company’s portfolio. In particular he was looking at the fast-growing Asian market (which almost always means China). What he didn’t tell me was how close he was to making a deal. Sunday, the French company said it acquired a majority stake in the Chinese fine jewelry brand Qeelin. The transaction is expected to be finalized in January 2013.

Qeelin describes itself as a company that “embraces the mythical essence of China’s cultural heritage with the excellence of French craftsmanship” through contemporary fine jewelry design. It interprets mythical and superstitious Chinese symbols as contemporary jewels. Founded in 2004 by Chinese designer, Dennis Chan, and French entrepreneur, Guillaume Brochard, the brand operates 14 boutiques (seven in Mainland China, four in Hong Kong and three in Europe). Its jewelry can also be found in trendy multi-brand stores, such as Colette in Paris, and Restir in Tokyo.

Pinault, said Qeelin “shows strong growth potential in China and beyond. We thus have great ambitions for the brand and will make it benefit from our expertise and know-how, so that it can speed up its development.”

PPR operates brands in the luxury and “Sport & Lifestyle” markets specializing in apparel and accessories. Distributed in more than 120 countries, PPR generated revenues of €12.2 billion ($15.7 billion) in 2011. Its brands are Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Stella McCartney, Sergio Rossi, Boucheron, Girard-Perregaux, JeanRichard, Puma, Volcom, Cobra, Electric, Tretorn and Fnac.

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Harry Winston to Pay $500 Million for Ekati Diamond Mine

Ekati Diamond Mine
Photo credit: Jason Pineau, through Wikipedia

Harry Winston Diamond Corp. said Tuesday that it has entered into share purchase agreements with BHP Billiton Canada Inc. and other affiliates to acquire all of BHP Billiton’s diamond assets, including its controlling interest in the Ekati Diamond Mine as well as the associated diamond sorting and sales facilities in Yellowknife, Northwest Territories and Antwerp, Belgium.

The Ekati Diamond Mine, located in the Northwest Territories of Canada, consists of the Core Zone, which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes having both development and exploration potential. The agreed purchase price, payable in cash, is $400 million for the Core Zone interest and $100 million for the Buffer Zone interest, subject to adjustments in accordance with the terms of the share purchase agreements.

“Completion of this acquisition will bring the opportunity to marry our Canadian diamond sorting and marketing skills with an experienced mine operating and development team, a world class operating asset, and future growth potential,” said Robert A. Gannicott, Harry Winston chairman and CEO. “Together with our existing mining business, these assets will serve as our platform for sustained, disciplined growth in the upstream diamond sector.”

Harry Winston, known for its luxury retail salons throughout the world, also supplies rough diamonds to the global market through its 40 percent ownership interest in the Diavik Diamond Mine, also located in the Northwest Territories. The company was looking to sell its retail assets, according to media reports, which it denied. Harry Winston also was reportedly in talks to buy the remaining interest in Diavik from its partner in the venture, Rio Tinto Diamonds. Talks between Harry Winston and BHP Billiton for the Diavik Diamond Mine were first reported in August.

The Ekati Diamond Mine, approximately 310 kilometers northeast of Yellowknife in the Northwest Territories of Canada, includes both open pit and underground operations and is Canada’s first, and largest, diamond producer, having begun production in 1998.

The Ekati Diamond Mine has produced an average of approximately three quarters of a billion dollars of rough diamonds per year over the past five years, Harry Winston said in a statement. Over that period sales from the Core Zone represented approximately 6 percent of world rough diamond supply by value. The current phase of production at the Ekati Diamond Mine includes ore sourced primarily from the lower grade, but high carat value, Fox open pit supplemented by underground production from the lower portion of the Koala kimberlite pipe and from the Koala North pipe. Although production in the next two years is forecast to be lower than the average achieved over the last five years, it is expected to return to higher levels as the mine transitions to higher grade, but lower carat value, ore from the Misery and Pigeon open pits. The current Ekati mine plan calls for a further seven years of production, but there are additional resources which could become economic with increased diamond prices.

The Core Zone and the Buffer Zone are subject to separate joint venture agreements. BHP Billiton holds an 80 percent interest in the Core Zone and a 58.8 percent interest in the Buffer Zone, with the remainder held by the Ekati minority joint venture parties. Harry Winston has agreed to purchase BHP Billiton’s interests in each of the Core and Buffer Zones. Pursuant to the joint venture agreements, BHP Billiton will first separately offer to the joint venture parties its interest in each of the Core and Buffer Zones on the same terms as those agreed to by Harry Winston. The joint venture parties will then have 60 days to elect to acquire either or both of those interests. Any interests that the joint venture parties do not elect to acquire within that time period can then be transferred to the Company in the following 60 days.

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Harry Winston Is Not For Sale

The Harry Winston salon in Paris.

Harry Winston Diamond Corp. issued a statement Thursday saying it is not in talks to sell its luxury jewelry and watch business.

“While it is the company’s general policy not to comment on market rumors, it confirms that it has received various indications of interest regarding a potential purchase of its luxury brand segment. It is not in active negotiations regarding any such transaction,” it said in the statement. “The company does not intend to make any further public announcements regarding this matter unless it concludes that they are warranted by the circumstances or are required by law.”

The statement came as a result of stories from Reuters and other outlets stating that Harry Winston “has been approaching potential buyers such as luxury groups LVMH and PPR.”

Harry Winston Diamond Corp. is a business with assets in the mining and retail segments of the diamond industry. Harry Winston supplies rough diamonds to the global market from its 40 percent ownership interest in the Diavik Diamond Mine. The company’s luxury brand segment is a diamond jeweler and luxury timepiece retailer with salons in key locations throughout the world.

Harry Winston shares ownership of the diamond mine in the Northwest Territories of Canada with mining giant Rio Tinto, which owns a 60 percent stake. The miner has announced its intention to sell all of its diamond mines to concentrate in larger mining segments. Harry Winston was reportedly in talks to buy the mine outright.

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Gitanjali to Pay Up To $15M for Italian Brand

Mehul Choksi

India’s largest diamond jewelry manufacturer and retailer is about two weeks away from acquiring a major Italian brand, according to media reports.

Mehul Choksi, chairman and managing director of Gitanjali Group, told India’s MoneyControl.com the company is spending about $10 to $15 million for the acquisition of the yet unnamed brand. The idea is to market this brand’s products throughout the company’s growing international network, which includes the Samuels and Rogers jewelry chain in the U.S., more than 20 retail brands in India and retail outlets in the Middle East, China and Japan.

He said the purchase could result in a 10 to 15 percent growth in revenue for the company.

A transcript and video of the interview can be found here.

Gitanjali Gems Ltd., its trading name, is an integrated diamond and jewelry retailing and manufacturing company in India. Its business portfolio includes rough diamond sourcing, cutting, polishing, jewelry manufacture and distribution to its jewelry branding and retail operations. Its brands include Gili, Nakshatra, Asmi, Sangini, D’damas, Vivaaha and Giantti. It has two segments: diamond and jewelry. In the diamond segment, it engages in an end-to-end diamond processing chain which begins with marking, cleaving, sawing, cutting and polishing. In the jewelry segment, process for the manufacturing of diamond studded and other jewelry flows from designing, model and mould making, waxing and wax setting, casting, sprue binding, filling, polishing, metal setting and rodium polish.

Richline Group Acquires Three Italian Brands

The Richline Group jewelry company has bought three privately held Italian jewelry brands for undisclosed amounts, Reuters reports.

Richline, headquartered in Mount Vernon, N.Y., and Tamarac, Fla., bought the rights to children’s jewelry maker Erz, earrings and bracelets maker Farinex and 7AR, a part of the Rosato jewelry group, based in Arezzo and Milan, Italy, according to the report.

“This is another important and strategic addition to our expansion into the international arena,” Dennis Ulrich, chief executive officer of Richline Group, reportedly said in a statement.

Richline Group announced in January it would buy privately owned Italian jewelry manufacturer Rosato, known for its gold and enamel charms. Instead, Richline opted to buy the 7AR brand, a branch of Rosato, Reuters reports.

Richline Group, a wholly-owned subsidiary of Berkshire Hathaway Inc., was formed in 2007 and includes such brands as Andin, Alarama, Aurafin, Auragem and Bel-Oro.

Will Signet Sell its U.K. Brands?

Signet Jewellers, the world’s largest specialty retail jeweler, is in talks with private equity companies about the possibility of selling interest in two of its U.K. retail jewelry chains, H Samuel and Ernest Jones, according to a report in the Sunday Telegraph.

Signet’s longtime financial advisors, Lazard Ltd., have initiated the talks, according to the report, which estimates that the two jewelry chains would sell for 400 million to 600 pounds ($650 million to $975 million).

Signet, based in Bermuda and listed on the New York Stock Exchange, owns jewelry chain operations in the U.K. and the U.S. in several markets. H.Samuel and Ernest Jones make up all of Signet’s 540 stores in the U.K., although Signet says it also owns the brands Leslie Davis, Forever Diamonds and Perfect Partner.

Signet’s U.K. business had sales of $693.2 million in fiscal 2011, accounting for 20 percent of its total company sales—a year-over-year decline of 5.5 percent. Same store sales fell 1.4 percent for the year.

H. Samuels has 338 stores with sales of 240 million pounds ($390 million) in 2011. It is listed as the number one specialty jewelry retailer store chain in the U.K, according to Signet’s website. Meanwhile, Ernst Jones consists of 202 stores with 2011 sales of 206 million pounds ($334.7 million). Signet says it is the top chain among the upper middle jewelry market in the U.K.

Signet operation in the U.S. consists of approximately 1,317 stores and accounts for 80 percent of total sales for the company. Its store brands in the U.S. include Kay Jewelers, Jared The Galleria Of Jewelry and a number of regional names.

LVMH to Buy a Controlling Stake in Bulgari

Bernard Arnault

Bernard Arnault has done it again. While no one was watching the chairman and CEO of LVMH Moët Hennessy Louis Vuitton has captured another prize: Bulgari.

In a few hours the two companies will announce that LVMH will purchase a 51 percent share of the Italian luxury jewelry house, according to the Financial Times and other published reports. The purchase will come in the form of a share swap. A person close to the deal told the FT that as part of the deal, Francesco Trapani, Bulgari’s chief executive, will take a senior position in the LVMH group, while Bulgari family members will get board representation.

According to the report the Bulgari family is united in agreement for the sale. This is in contrast with LVMH’s 20-percent position in Hermès, the Parisian luxury house, which is still being talked about in luxury circles. This deal was done in late 2010 through a complex derivatives position without the knowledge of the heirs of the Hermès family, who own 70 percent of the fashion house. The family has publicly voiced its disapproval. 

Update, March 7, 2:35 a.m EST: LVMH just released its announcement of the acquisition with addition information. Upon completion of the share transfer process, LVMH said it will issue 16.5 million shares in exchange for the 152.5 million Bulgari shares currently held by the Bulgari family, who will become the second largest family shareholder of the LVMH Group. In compliance with the Italian Stock Exchange regulations, LVMH said it will submit a Public Purchase Offer at the price of €12.25 per share on the shares held by minority stockholders.

The statement further defines Bulgari executives’ positions in LVMH. Paolo and Nicola Bulgari will remain chairman and vice chairman of the Bulgari S.p.A. Board of Directors, respectively. The Bulgari family will have two representatives on the LVMH Board of Directors. Trapani will join the executive committee of LVMH and will assume, in the second half of 2011, the management of the LVMH enlarged watches and jewelry activities, which includes the brands TAG Heuer, Chaumet, Zenith, Hublot, Fred and De Beers. Philippe Pascal, the current head of jewelry and watch group, will remain on the LVMH executive committee and be given new responsibilities within the Group, the statement said.

“Our entrance into LVMH will allow Bulgari to reinforce its worldwide growth and to realize noteworthy synergies, in particular in the areas of purchasing and distribution,” Trapani said. “Bulgari and these brands will be able to invest and innovate even further to become the world leader in the high end segment.”

Arnault added: “We share the same culture in terms of respect for identity and roots of the brands, quest for excellence, creativity and innovation. As is the case with LVMH, the Bulgari family shareholders are directly involved in managing the company, they are entrepreneurs that know and excel in all aspects of the business, from the creation of the product to after sales service. It is for these reasons that we immediately understood each other and agreed on the way we would work together.”

Report: Tiffany May Be Ripe for Acquisition

Tiffany & Co. flagship store

Tiffany & Co. has sparkled as the world slowly recovers from one of the worst economic downturns ever. Just today, the luxury jewelry retailer said its holiday net sales grew 11 percent, over the prior year, and that it has increased its global sales outlook to $3.1 billion, well above the $2.7 billion in sales it earned in 2009.

All this success has made the New York-based company ripe for acquisition, according to a Paris-based hedge fund manager.

Bernheim, Drefus & Co. said Tuesday that Tiffany could be the subject of a takeover bid by a luxury conglomerate in 2011, the UK jewelry trade publication Professional Jeweller reports. The most likely suitors are Richemont, Swatch Group and LVMH.

“2010 has been a splendid year for Tiffany with a surge in both sales and stock price and with a great outlook and a consolidating market there is still plenty of room for a continuing growth in the stock,” the company reportedly said.

The hedge fund also said that being a part of a conglomerate would allow Tiffany to “to increase its footprint and have a stronger position towards its stakeholders.”