Gitanjali Group Acquires Rogers Jewelers
By JCK Online Staff -- JCK Online, 11/19/2007 11:32:00 AM
Gitanjali Group Ltd. India’s largest integrated diamond and jewelry manufacturer and retailer, acquired Rogers Jewelers, one of the oldest family run jewelry chains in the U.S.
Gitanjali Gems has acquired a 100 percent stake in the specialty retailer, which operates 46 stores spread across 11 states in the U.S. with current revenues of $80.6 million, for an investment of $20 million. Gitanjali Group said in a statement that it will invest an additional $15 to $20 million.
Rogers Jewelers's acquisition follows the purchase of Samuels Jewellers Inc. in December 2006. The acquisition makes the Gitanjali Group the world's largest and only fully integrated diamond jewelry retailer.
It establishes the group’s footprint in the U.S. jewelry market, which commands 35 percent of the global jewelry market, making it a landmark step for the industry, Gitanjali Group said in a statement. The U.S. is a predominantly diamond jewelry market, with more than 55 percent of the total jewelry sold being diamond studded jewelry, which fits in well with Gitanjali Gems’ manufacturing expertise. With the U.S. accounting for over half the global diamond jewelry sales, it also marks a significant consolidation in Gitanjali’s global footprint.
The acquisition will benefit the group, enabling them to manage both, Samuels and Rogers with the same back-end supply chain from India, Gitanjali Group said.
“A robust retail network is the lifeline to connect with the end consumer completing the whole supply chain," said Mehul Choksi, chairman Gitanjali Group. "At Gitanjali we will aggressively pursue any such opportunities that will synergize with the company’s philosophy to add incremental value to ensuring greater shareholder value and significantly boosting the company’s bottom line."
