Rajesh Exports in acquisition talks with US jewellery retail chain

Jewellery manufacturer Rajesh Exports is in advanced talks to acquire a string of jewellery retail stores abroad for $100-200 mn. The company is working on a complex deal where it is going to acquire a mid-size jewellery chain in the US apart from snapping standalone local jewelers in about 15 countries across North America, Europe, Asia and Australia.

The US jewellery chain, with which Rajesh Exports is in talks, has about 80-100 stores spread across the country and the deal is expected to be valued at around $50-100 mn. This would include its in-house jewellery brands. Rajesh Exports is looking to acquire a majority stake in this chain. This deal is expected to be closed within the next 4-6 weeks. The acquisition of the US-based chain by Rajesh Exports is part of a game plan of becoming a large global retailer of jewellery. Other countries where negotiations are currently on include the UK, Canada, France, Germany, Switzerland, Thailand, Malaysia, Australia, Singapore, the UAE, Kuwait, Oman and New Zealand. The company would acquire a handful of jewellery retail outlets in each of these countries spread across 35 cities totaling about 50-60 stores. This strategy is similar to the company’s ongoing retail expansion in India where one of its retail brands, Shubh, is modeled on similar lines by bringing local jewelers in different cities under its umbrella. All the international retail outlets would be under its wholly-owned retailing subsidiary, 24K Retail. The acquisition will be financed through a mix of debt and equity. The company has already announced that it is planning to raise about $150 mn from overseas investors, which will part-fund the acquisitions.

Read The Economic Times article.