Zamels heads overseas; Local buyer disappointed

4.2 k views | Posted November 08, 2011 | By Aaron Weinman

At least one local suitor is disappointed with the offshore sale of The Jewellery Group.

After Jeweller reported yesterday that an Indian jewellery company had acquired the 102 Zamels and 27 Mazzuchelli stores, Transworld Enterprises managing director Albert Bensimon expressed disappointment in the sale process.

Although the terms of the transaction have not been disclosed, industry sources familiar with the final deal say the final price tag was between $18-$19 million.

Bensimon, whose group owns the 40-store Shiels and Grahams’ brands, previously told Jeweller that Deloitte, which reportedly handled the sale for Quadrant Private Equity, had approached him about acquiring The Jewellery Group (TJG).

Months earlier Bensimon had expressed interest in purchasing TJG and made an offer, only to discover that neither Deloitte nor Quadrant pursued his pitch.

“It’s disappointing that they didn’t accept my offer even though it was the same if not more [$18 million],” Bensimon said.

Bensimon, disappointed at losing out on the acquisition believes that M Suresh will have minimal impact on the Australian market, suggesting that TJG may have been a debtor to M Suresh.

“They [TJG] preferred to sell it to an overseas company either because they owed them money or they wanted to save face because they thought my offer was ridiculously low,” Bensimon said. “As it turns out, my offer was ridiculously accurate.”

Industry sources believed that Quadrant paid around $48 million for the Zamels business in 2007 and managing director, Chris Hadley confirmed the sale now excludes his firm from any future business dealings or involvement with TJG.

“The company (TJG) is going to move forward in a positive way,” Hadley told Jeweller. “Unlike other retail businesses that have resulted in closed stores and people out of jobs, it’s a positive outcome given the investors want to invest further and grow the business.”

Adrian Murphy, CEO of TJG confirmed that this was in fact a total sale of the group to M Suresh.

“This partnership gives us a lot more longevity in regards to where the business needs to strategically develop,” Murphy said. “We are excited about the opportunity because it’s quite unique and one we have been working on for a number of months now.”

M Suresh has long been considered the likely purchaser of TJG, which operates 102 Zamels stores nationally and its 27 Mazzuchelli stores across Western Australia, South Australia and the ACT.

TJG’s senior management team remains unchanged, with Adrian Murphy continuing as CEO and Lachlan Gunn as chief financial officer. The company will remain headquartered in Adelaide.

A DeBeers sight holder, M Suresh is a manufacturer of cut and polished diamonds distributed worldwide. According to its website, M Suresh exports to the USA, Europe, Japan, South East Asia, Israel, UAE and Canada. 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 said.

More reading:
Indian Jewellery company buys Zamels
Indian suitor tipped for Zamels Jewellers
Who’s buying Zamels?