Gitanjali Gems has acquired US jewellery retail chain Rogers for an undisclosed sum, a move that will boost the company’s retail presence in India and abroad. This is the company’s second largest acquisition in the world’s largest jewellery market.
Privately-held Rogers is headquartered in Middletown, Ohio and operates 46 retail stores under brand names 'Rogers Jewelers' and 'Andrews Jewelers'. Rogers has revenues of $80 million.
This acquisition will enable Gitanjali to leverage Rogers' existing retail infrastructure and access US consumers, the company said in a release issued today.
Gitanjali Gems is looking at raising capital for its acquisition and expansion plans. It has proposed to garner around Rs 320 crore by issuing 10 million convertible equity warrants to the promoters on a preferential basis.
In last December, the company bought US-based Rs 450-crore jewellery chain Samuels, marking its maiden acquisition in the gems and jewellery space. Samuels has 100 stores in the US, with sales of Rs 500 crore and a back-end capacity for 150 new stores.
The acquisition enabled the company to cut down at least three layers of middlemen in diamond polishing and manufacturing and gaining control of the value chain.
Gitanjali has already expressed its intention to create brands for the US market. Earlier this year, the company bought 70% stake in Tri-Star Worldwide, a Canada mark licensee and a direct customer of BHP Billiton. The tie-up would enable Gitanjali to increase its diamond sourcing from the Canadian mine.
The company plans to invest Rs 100 crore over two years for its domestic retail plans. It is in the process of establishing luxury malls and introducing international brands in the country.
November 2007: Snapped up US retail jewellery chain Rogers
February 2007: Acquired 70% stake in Canada-based Tri-Star Worldwide, a branded diamonds and jewellery maker, for an undisclosed sum
December 2006: Snapped up 97% stake in US-based Samuels Jewelers, a jewellery retailer, for Rs 100 crore