Titan Company to acquire 67% stake in Dubai's Damas in all-cash deal

Titan Company has signed an agreement to acquire a 67% stake in Damas LLC, marking a strategic expansion into the GCC jewellery market, with an all-cash deal valued at AED 1,038 million (Rs 2,439 cr)

Titan Company, through its wholly owned subsidiary Titan Holdings International, has signed an agreement to acquire a 67 per cent stake in Dubai-based Damas LLC from Mannai Corporation in an all-cash deal, it has said in a stock exchange filing.

 

The Dubai firm’s enterprise value has been assessed at 1,038 million Arab dirhams (₹2,439 crore). 

 

Damas LLC is the holding company for the Damas jewellery business in countries of the Gulf Cooperation Council (GCC). 

 

The current Graff Monobrand franchise business of Damas LLC will be discontinued before the completion of the proposed transaction. 

 

After restructuring, Signature Jewellery Holding will become the holding company for Damas, and all the entities under Damas LLC (United Arab Emirates) will become step-down subsidiaries of Signature Jewellery Holding, it said in its exchange filing. 

 

The proposed transaction is expected to be completed by January 31 and it will be subject to customary closing adjustments and approvals from anti-trust and other regulatory authorities in certain jurisdictions.

 

It is expected to be financed through debt, cash balances, and internal accruals.  

 

“The proposed transaction is strategically significant for Titan’s jewellery business as it will facilitate the expansion across the six GCC countries of the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain,” Titan said in its release.

 

The release added the region was exhibiting robust economic growth, creating demand for differentiated, high-quality products rooted in Arabian aesthetics and appealing to a sophisticated clientele seeking unique, culturally resonant designs.

 

Titan Holdings will have the option to acquire the remaining 33 per cent from Mannai after December 31, 2029, but it is subject to conditions in the definitive document. 

 

C K Venkataraman, managing director of Titan, said in the release: “After successfully establishing Tanishq in the GCC countries and the United States, our ambition for a global jewellery play is moving to the next stage. With the Damas acquisition, Titan Company is stepping out from its diaspora focus into other nationalities and ethnicities.” 

 

He added that Damas was a prestigious brand whose legacy and presence in the GCC region aligned with the company’s vision to deliver value to customers.  

 

“The acquisition not only creates a significant new global opportunity for Titan, but also enhances Titan’s overall position in the jewellery market in the GCC countries and brings in multiple synergy benefits in talent, retail networks and supply chain. We are happy to welcome Damas into the Titan family. We look forward to building on Damas’ rich heritage while driving the brand's sustainable growth journey together with Mannai Corporation,” Venkatraman added. 

 

Damas Jewellery was founded in 1907 and headquartered in Dubai, and is a premier jewellery retailer in West Asia. It has a network of 146 stores. 

 

Alekh Grewal, group chief executive officer of Mannai Corporation, said in the release that Damas became a subsidiary of Mannai in 2012 and it was time for investment in the next phase of its expansion in the region. 

 

“We are delighted that Titan is taking the opportunity to invest in the future of Damas. Both Titan and Damas share the same values in terms of passion for beautiful jewellery, innovative design and dedicated customer service. and we are confident that the combination of Damas powered by Titan will drive Damas in the next chapter of its growth trajectory in the GCC,” Grewal said. 

 

He added Mannai would continue to own a majority stake in Damas for the next four years.