Zamel’s and Mazzuchelli’s stores will continue to operate under their respective brand names, while no stores will be closed as a result of the new partnership.
Indian jewellery company buys Zamels
By Aaron Weinman
One of the world’s largest jewellery manufacturers has purchased The Jewellery Group from private equity firm Quadrant.
The Jewellery Group (TJG), which operates the Zamel’s and Mazzuchelli’s retail brands, announced today that will form a “strategic partnership” with one of the world’s largest jewellery manufacturers, Mumbai-based, M Suresh Group DMCC. Previous owner Quadrant confirmed that the “strategic partnership” was indeed a sale.
As previously reported by Jeweller in September, M Suresh has long been considered the likely purchaser of the 129-store company, which has been shopping around for a buyer in recent months. A number of highly-placed industry members had previously been approached by TJG’s agents, Deloitte, while analysts speculated that the company’s parent company, private equity firm Quadrant, was unlikely to find a local buyer.
While no details have emerged on the terms of deal between TJG and M. Suresh, Quadrant is believed to have purchased the Zamels and Mazzuchelli’s stores in 2007 for $48 million. Sources close to the recent negotiations told Jeweller that Quadrant has been attempting to offload the business for less than $20 million.
According to a press release, the Zamel’s and Mazzuchelli’s stores will continue to operate under their respective brand names, while no stores will be closed as a result of the new partnership.
TJG’s senior management team will remain unchanged, with Adrian Murphy continuing as CEO and Lachlan Gunn as chief financial officer. The company will remain headquartered in Adelaide.
Zamels Jewellers sold
The company’s website states that M Suresh has been “a leading diamond manufacturer, importer and exporter of cut and polished diamonds since 1968. Presently, the firm exports to USA, Europe, Japan, South East Asia, Israel, UAE and Canada.”
“The partnering of TJG with M Suresh is consistent with our business objective, to be the pre-eminent jeweller in Australia,” Murphy said. “This unique partnership will span the distance from mines to market in contemporary retail shopping.”
M Suresh, a DeBeers sight holder, is a manufacturer of cut and polished diamonds distributed worldwide and TJG believe this partnership will underpin long term success along with access to quality diamond ranges.
“The combination of M Suresh’ extensive industry resources with TJG’s rich network of retail stores provides an exciting and unique opportunity for expanded market share and future growth,” Murphy added.
Zamel’s currently has 102 stores nationwide, while Mazzuchelli’s operates 27 stores across Western Australia, South Australia and the ACT.
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Posted November 07, 2011