Gangsu Gangtai Holding has completed its acquisition of Italian high jewelry house Buccellati.
The Chinese conglomerate has acquired an 85% stake in the luxury jeweler, internationally known for its time-honored hand-crafted techniques developed in Italy. The transaction price was based on an equity value of €230 million ($271 million) for 100% of the company.
Gangtai says it plans to both sustain its presence in existing markets—namely Italy, Europe and North America—and to develop in the new markets—such as China, Asia, the Middle East and Eastern Europe—with a five-year investment of €200 million ($236 million) that will fund 88 new Buccellati boutiques.
The deal was first announced in December 2016 and the closing was completed Tuesday at a press conference in Milan. In attendance was Xu Jiangang, founder and chairman of Gangatai Group, Andrea Buccellati, who will maintain his position as creative director, and Gianluca Brozzetti, who will continue as honorary chairman and CEO.
Buccellati, founded in Milan in 1919, is one of the most prestigious jewelers in Italy. It was family owned until 2013 when Clessidra, an Italian investment holding company, acquired a 67 percent stake of the company, with the remaining 33 percent retained by the founding family.
With the new agreement Clessidra and the Buccellati family will retain the remaining 15 percent stake in the company. In addition, all jewelry making will remain at Buccellati’s headquarters.
“Our will is to maintain Buccellati’s identity while enhancing all of the elements which make it one of the best known brands worldwide in the fine jewelry sector, including its craftsmanship, design and originality, which are the heritage of Italian jewelry,” Xu Jiangang said.
“It is the will of the new shareholder,” Andrea Buccellati added, “to preserve the company’s uniqueness, especially its excellence, craftsmanship and quality. In this respect, Gangtai Group’s recommendation to keep the production in Italy represents a solid commitment.”
Gangtai Group is a privately held conglomerate in the consumer, culture, finance and health industries with a capitalization of approximately $3.5 billion and revenues of more than 1.4 billion. Its subsidiary, Gangsu Gangtai Holding (Group) Co. Ltd, is one of largest gold jewelry distributers and a leading internet jewelry retailer in China with more than 1.200 employees, and is focused on growing its presence in international luxury.
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