Gitanjali acquires US jewellery retailer

Gitanjali Gems has acquired US retail jewellery chain Rogers for $18.5 million to boost the company's retail presence in abroad.

The privately held Rogers is headquartered in Middletown, Ohio and operates 46 retail stores under brand names Rogers Jewelers and Andrews Jewelers. Rogers revenues this year stood in the region of $80 million.

The acquisition will enable Gitanjali to leverage Rogers' existing retail infrastructure and access US consumers, the company said.

Gitanjali was looking at raising capital for its acquisition and expansion plans. It has proposed to garner around Rs 320 crore by issuing 10 million convertible equity warrants to the promoters on a preferential basis.

In December last year, the company bought US-based jewellery chain Samuels, marking its maiden acquisition in the gems and jewellery space. Samuels has 100 stores in the US, with sales of Rs 500 crore and a back-end capacity for 150 new stores.

The acquisition enabled the company to cut down at least three layers of middlemen in diamond polishing and manufacturing, and gaining control of the value chain.

Gitanjali has already expressed its intention to create brands for the US market. Earlier this year, the company bought 70 per cent stake in Tri-Star Worldwide, a Canada trademark licensee and a direct customer of BHP Billiton. The tie-up would enable Gitanjali to increase its diamond sourcing from the Canadian mine.

The company plans to invest Rs 100 crore over two years for its domestic retail plans. It is in the process of establishing luxury malls and introducing international brands in the country.