Indian jewellery designer and manufacturer Renaissance Jewellery has acquired US-based Jay Gems for Rs 200 crore, according to a report in Economic Times.
With this transaction, Renaissance adds a globally popular brand to its portfolio and forays into new markets such as China.
The deal will also help Renaissance Jewellery tap into the exclusive license agreement the New York-based firm has with Enchanted collection by Disney Fine Jewellery.
Disney is the biggest licensing company in the world, with USD 55.1 billion in global sales in 2017. Disney’s Enchanted collection features a variety of designs ranging from earrings, rings, and pendants.
The new acquisition is also in line with its strategy to secure licenses for global brands.
New York-based Jay Gems has a strong client base including Zale, JC Penny, Signet, Fred Meyer, and Riddles, with a strong presence across the US, the UK, and Canada.
“In 2016, RJL signed a license agreement with Hallmark to launch the Heart of Hallmark Jewellery collection,” Sumit Shah, Vice-Chairman, Renaissance Jewellery Ltd, told BusinessLine.
According to the ET report, the deal is expected to be announced next week.
In FY 2018, RJL saw a turnover of Rs 1,825 crore, growing at 24 percent over FY17. Whereas on the other hand, Jay Gems earned USD 79.54 million (Rs 554 crore) in FY 17. Interestingly, half of the sales came from its Enchanted collection.
Founded in 1995, Renaissance is the largest manufacturer and supplier of branded studded jewellery to major global retailers in the US, Canada, Europe, West Asia and Asia. The company has four manufacturing units in India (Mumbai and Bhavnagar), Bangladesh and Dubai.