In a joint statement with Fabergé, Gemfields said the jeweler wouldprovide the miner with direct control over “a high-end luxury goodsplatform” and a global brand with an exceptional heritage.
“Theproposed acquisition of Fabergé further enhances our potential to berecognized as the leading colored gemstone company,” said IanHarebottle, Gemfields’ chief executive officer.
“It provides exposureto the two most profitable segments in the gemstones value chain,namely mining and consumer sales. Fabergé is a globally recognized brandwith a unique heritage, a history of excellence and a commitment tocolored gemstone products, sales and marketing,” he added.
According to the statement, the deal consolidates the Gemfieldsbrand as The Coloured Gemstone Co. It also “creates a platform toincrease the company’s market share within the colored gemstone sector,while gaining exposure to luxury sector multiples and greater influenceover product positioning and consumer awareness.”
Gemfields will continue to sell its rough colored gemstoneproduction through its established auction platform. The acquisition,which will be paid for in Gemfields shares, is set to be approved byshareholders at the company’s annual meeting next month.
Gemfields has been on an expansion streak: The London-based companythat specializes in Zambian emeralds and colored gemstones is amping upits U.S. presence through a series of initiatives.
It has a new office in Manhattan’s Chelsea neighborhood, plans tobuild an American division and will have a revamped Web site launchingin January. In the pipeline is its first official U.S. ad campaign and aslew of high-end designer collaborations.
The firm, which provides about 20 percent of the world’s emeraldsupply, wants to establish itself as an ethical, fashion-forward luxurybrand.
It’s not the first marriage of mining and luxury the market has seenrecently: Over the past month, Harry Winston purchased the EkatiDiamond Mine and Diamonds Marketing Operations from BHP Billiton, andseparately, a subsidiary of Tiffany & Co. has extended a $6 millionterm loan to DiamondCorp plc, the South African diamond development andexploration company.
As part of the loan agreement, Tiffany’ssubsidiary will have the right to purchase production from DiamondCorp’sLace Mine in South Africa.
Gemfields purchased Fabergé from Pallinghurst Resources and otherinvestors who were operating through a holding company called Rox Ltd.Pallinghurst, which purchased the Fabergé trademarks and licenses fromUnilever in 2007, has spearheaded Fabergé’s revival and its ambitions toposition itself alongside the great heritage brands of the fine jewelryworld such as Cartier, Harry Winston and Tiffany.
Gemfields and Pallinghurst are two companies that know each otherwell: One of the executive directors of Gemfields is Sean Gilbertson,the son of Pallinghurst founder and chairman Brian Gilbertson.
Until now, Pallinghurst and one of its subsidiaries held a majoritystake in Gemfields through Rox Ltd., but Rox will be dismantled as aresult of the Fabergé takeover, with shares handed back to its variousinvestors. When the deal is finalized, Pallinghurst will becomeGemfields’ shareholder of reference, with just less than half theshares.
Fabergé has boutiques and retail concessions in Geneva, New York, London in Mayfair and Harrods in Knightsbridge, and Hong Kong.
According to the statement on Wednesday, Fabergé is set for growth,with revenues rising 367 percent in the financial year to March 31,2012. In the fiscal year to June 30, 2012, Gemfields’ revenues were up108 percent to $83.7 million with profit before tax and exceptionalitems up 140 percent to $47.8 million.
According to the statement, Fabergé is aiming to open an average oftwo stores per annum over the next 10 years, with an aim of 71 stores by2033. Fabergé is targeting $6.5 million of annual sales in the mediumterm for each store added.
@beyonce chose a custom gown by @falgunishanepeacockindia for mother @mstinalawson 's second annual Wearable Art Gala last night. The gown, which took 10 days to make, was inspired by Nubian warrior queen Amanishakheto. Reporting by @hernameislex . #wwdeye 👑 🐝#beyonce
After dressing @justintimberlake for his Super Bowl halftime performance last month, @stellamccartney has designed the star’s "Man of the Woods" tour wardrobe. Timberlake will be wearing a mix of pieces from McCartney’s fall men's collection as well as custom designs and items from his own closet. #wwdfashion
@carmeloanthony is upping his fashion game once again, introducing a hat collection with @goorinbros. Called Fresh Greens by Melo x Goorin, the line consists of five unisex models, all of which are made in America from 100 percent wool. Each hat is lined with Anthony’s signature and the inscription “Knowledge of self, wisdom and understanding.” You can purchase the collection line at Goorin’s website as well as three off its stores in San Francisco, New York City and Las Vegas #wwdaccessories
“I am of tradition, but that doesn’t mean I have an old outlook on life,” Hubert de Givenchy told WWD in an interview in 1978. The legendary designer, who died last week at the age of 91, achieved wide success soon after launching his own couture boutique in the early ’50s, but he refused to pine for that time. For the first time since its original publication, read our interview with Givenchy on his awe for Audrey Hepburn and looking forward. Link in bio. #wwdarchives #fbf (📷: Pierre Schermann)
About last night: @alexachung and @supergausa toasted the launch of their capsule collection. “It’s the shape that I love, so rather than amend the last and make the sole crazy or do anything wild, we just did really subtle additions that I think make it look really luxe-y,” said Chung. #wwdfashion (📷: Marc Patrick)
Exclusive: @off____white’s @virgilabloh is launching an exclusive eyewear capsule collection @sunglasshut. The unisex collection, which is made up of three styles, first made its debut on the brand’s fall runway show in Paris. Get all the details on WWD.com – link in bio. #wwdnews #wwdfashion