Chinese Conglomerate Completes Acquisition Of Buccellati

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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Tiffany CEO Frederic Cumenal ‘Steps Down’ Amid Financial Disappointment

Frederic Cumenal

In a Super Bowl Sunday shocker Tiffany & Co. said that Frederic Cumenal has “stepped down” as its chief executive officer, effective immediately. Michael J. Kowalski, chairman of Tiffany’s board of directors and previous CEO, will serve as interim CEO while the company works with an executive search firm to finds a successor. In a statement, the company said the decision was based on disappointing financial results.

“The board is committed to our current core business strategies, but has been disappointed by recent financial results,” Kowalski said in a statement. “The board believes that accelerating execution of those strategies is necessary to compete more effectively in today’s global luxury market and improve performance.”

The announcement came just hours before the luxury jewelry retailer plans to unveil Lady Gaga as the face of its new fashion jewelry collection, Tiffany HardWear, with its first ever Super Bowl commercial prior to her halftime performance. The company also creates the Vince Lombardi Trophy, presented to the Super Bowl champion, as well as the Pete Rozelle Trophy, presented to the Most Valuable Player of the Super Bowl.

Even taking into consideration that most news and financial staffs will have skeleton crews working and the nation will be focused on the game rather than personnel moves, the timing of the announcement during such an important time for the company seems surprising. 

Mark L. Aaron, Tiffany's VP-Investor Relations, said on Sunday that the timing was coincidental. “That’s just the way it happened,” he said. “Analysts, investors and media work 24-7 and it still gives people a chance to watch the Super Bowl.”

Michael J. Kowalski

Cumenal replaced Kowalski as Tiffany’s CEO April 1, 2015. He previously served as president of the company with responsibilities for worldwide sales and distribution as well as design, merchandising and marketing functions. He initially joined Tiffany in March 2011 as an executive vice president with responsibilities for sales and distribution.

“On behalf of the entire board of directors, I would like to thank Frederic Cumenal for his contributions to Tiffany,” Kowalski said. “At a time of continuing challenges in the global luxury market, Frederic has enhanced the management team and taken important steps to position Tiffany for success in the long term. We wish him the best in his future endeavors.”

Cumenal said in the statement, “I am proud of what we have accomplished at Tiffany and would like to thank the management team and our many talented employees around the world with whom I have had the pleasure to work. I have great confidence in Tiffany's brand, strategic direction and people, and I believe the company will have many exciting opportunities in the future.” 

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Georg Jensen Names David Chu as CEO

David Chu

Danish luxury silver brand and global retailer, Georg Jensen, said Friday it has appointed fashion designer and entrepreneur, David Chu, as its chief executive officer. Chu is well-known in the world of fashion for founding Nautica, the global lifestyle and clothing brand, in 1983 and turning it into a company with $1 billion in sales by the time he sold it in 2003 to Vanity Fair Corp.

Chu has been with Georg Jensen since November 2012, when the company was acquired by Investcorp. Chu was brought on as co-chair of Georg Jensen’s board of directors and chief creative officer. He will continue to serve as a board member as well as CCO to oversee the design direction and strategy for all products.

“My goal is to bring Georg Jensen to the design conscious community all over the world,” Chu said in a statement.

Among his many positions since selling Nautica, Chu served as chief creative officer of Tumi, the global luggage, travel and accessory brand.

Founded in 1904, Georg Jensen is known for its collaborations with leading artists and designers of the 20th century, including Henning Koppel, Johan Rohde and Arne Jacobsen, who are among the masters of 20th century modernism and Scandinavian design.

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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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Harry Winston Opens Salon in Harrods

International luxury brand, Harry Winston, on Friday opened a salon in Harrods, marking its second retail location in London and 27th worldwide.

Located in the luxury department store’s fine jewelry room, the salon was designed by Studio Sofield, Inc. of New York. The 631-square-foot space uses a soft taupe and grey color palette complements the custom designed black lacquer and antique bronze furniture and display vitrines, with vintage floor lamps, bespoke chandeliers and hand beaded silk walls completing the look.

The salon contains dedicated high jewelry, bridal jewelry, and timepieces, including one-of-kind pieces from the brand’s Ultimate Adornments. Harry Winston’s largest high jewelry collection to date, was on display for the grand opening.

Frédéric de Narp, president & CEO, Harry Winston Inc., said the new salon is part of the company’s expansion plan.

“Harry Winston salons are located in the finest shopping destinations across the globe,” he said. “As one of the great international cities, London is a key and critical part of our retail growth.”

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Luxury Brands Still Bet on China

Hublot Shanghai boutique.

Despite the recent reports of an economic slowdown in China, luxury companies continue to build their extravagant retail spaces for the growing mass of wealthy and middle class shoppers.

The latest example of this is Swiss luxury watch brand, Hublot, which opened its second boutique in Shanghai Tuesday. Located on Nanjing West Road, an area renowned for its concentration of top luxury brands, the boutique features the black that defines the Hublot brand along with leather furnishings, glass and metal fixtures, and high-tech details that create a contemporary space.

The boutique is the fourth in China for Hublot along with four other points of sale in Beijing, Shanghai, Dalian, Shenyang and Wuhan. The brand said it plans to have 15 outlets in China “within a short time frame.”

A month earlier, the German luxury brand, Montblanc, opened a four-story flagship in Beijing to house its luxury writing instruments, timepieces, fine jewelry and leather goods with an extravagant party attended by 1,000 persons, including Jessica Alba, Naomi Watts, Nicolas Cage and Amber Heard.

It is the largest store by the brand and includes interactive displays throughout the store that focuses on the company’s heritage.

So while investors take a pause, luxury brands continue to bet that China will continue on its road to prosperity.

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Tiffany Restructures its U.A.E. Retail Operation

Tiffany & Co. has taken control of its destiny in the United Arab Emirates by restructuring its joint agreement with retailer Damas Jewellery.

Damas, based in the U.A.E., is an international jewelry and watch retailer. Under the new partnership agreement between the two companies, all of operational, merchandising and sales, and marketing management for the five Tiffany & Co. stores in the U.A.E. will be transferred from Damas to Tiffany. Previously, Tiffany sold its merchandise, on a wholesale basis, to Damas which operated the Tiffany & Co. stores.

The move was reportedly related to Damas’ delisting from Nasdaq Dubai after shareholders agreed to a buyout bid from a consortium of private investors.

Under the new joint venture, the new entity will be incorporated in the U.A.E as TCO Damas Associates L.L.C.

“This restructuring of our retail presence in the U.A.E. through this joint venture with Damas allows us, for the first time, to wholly manage Tiffany's operational activities,” said Laurent Cathala, Tiffany's VP of Emerging Markets. “It underscores the importance of the U.A.E. market to our global expansion strategy and highlights our optimism about the long-term growth potential we see throughout the Middle East.”

Tiffany also announced the appointment of Stephane de Palmas as general manager of the new U.A.E. retail operation. The 46-year-old luxury retail veteran will be responsible for the overall management of the Tiffany & Co. stores in Dubai and Abu Dhabi.

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.”