Lugano Diamonds & Jewelry acquired by Compass Diversified for $ 256 million

0

WESTPORT, CT – Compass Diversified has acquired Lugano Diamonds & Jewelry Inc. in a transaction valued at over $ 250 million.

Based in Newport Beach, California, and founded in 2004, Lugano “makes unique jewelry for some of the world’s most demanding clientele,” according to a press release. The company sells its wares through four retail shows in Newport Beach, Aspen, Palm Beach and Ocala, as well as pop-up showrooms at exclusive events hosted by Lugano. The events “provide an opportunity for existing and new clients to network with like-minded people and to bond around common interests in fine art, charity and sporting activities.”

Lugano will continue to be managed by its current team, and the current owners and managers will retain a significant minority stake in the company.

Compass (NYSE: CODI), an investment holding company, bought the business for an enterprise value of $ 256 million, excluding working capital and certain other closing adjustments.

“We are excited to add a growing luxury goods brand like Lugano to the CODI portfolio of niche brand consumer affiliates,” said Elias Sabo, CEO of Compass. “Lugano’s deep commitment to product design and its genuine connection with its target customers sets it apart from its competitors. We believe that Lugano, as a trusted jewelry advisor offering a rare combination of exclusivity and service, has a sustainable business model capable of generating significant revenue and growth in the short and long term.

Sabo continued, “From our perspective, Lugano is uniquely positioned to benefit from the resources and access to capital that CODI will provide and build on the vision and capabilities of the company to become the next major jewelry brand. . The company has experienced impressive growth, particularly in recent years, and is in the process of adding to its talented team. CODI intends to continue its growth as Lugano invests in its merchandising strategy, notably by continuing its deployment in retail and expanding its event marketing efforts. We look forward to partnering with the Lugano team to achieve new levels of business success to create value for our shareholders. “

Advertising

Moti Ferder, co-founder and CEO of Lugano, said: “This moment marks the culmination of years of work by the entire Lugano team, and we are incredibly proud to partner with CODI for the next phase of our growth. For over a decade, we have sought to deliver one-of-a-kind jewelry through special, curated experiences that are distinct from traditional jewelry buying experiences. With this dedication to authentic and high quality connections with our consumers, we have built a loyal and long-term consumer base, and we hope that the support of CODI will provide us with the necessary resources to introduce the Lugano model to more. of customers. Together, we are ready to transform the high-end jewelry retail space for the benefit of our valued customers. “


Source link

Leave A Reply

Your email address will not be published.