Baccarat announced on Friday the centuries-old crystal maker has been acquired by a Chinese investment firm, as it looks to ramp up international expansion.
The French luxury home and tableware brand said China‘s Fortune Fountain Capital (FFC) would acquire an 88.8 per cent in the company from U.S. investment funds Starwood Capital Group and L Catterton.
As per the agreement, FFC will pay 222.70 euros per share, valuing Baccarat at around 185 million euros ($207 million). That is below the closing price of Baccarat shares on Thursday of 259.90 euros and the current market valuation of 215 million euros, reported Reuters.
Baccarat said FFC plans to launch a public takeover offer for the remaining shares at the same price, but has no intention of delisting the shares from the Paris stock exchange. FFC has also committed to make “significant” investments in its core areas of activity, said the French firm, and it plans to “maintain and centralise all production and employment and will honour the company’s 250-year heritage.”
Baccarat’s current chief Daniela Riccardi would remain at the helm.
Founded in 1746, Baccarat makes tableware, chandeliers and jewellery. It employs 500 people and generated net profit of 2.2 million euros on sales of 148 million euros in 2016.