Gemfields, the mining group, has disclosed the sale of its entire ownership in the esteemed jewellery brand Fabergé. The purchaser, U.S.-based SMG Capital, procured the brand for a sum of US$50 million – a cost that many in the industry have described as unusually low for a brand with such a rich history.
As of December, Fabergé had net assets amounting to $50.35 million. Nevertheless, the brand had experienced operating and net losses totaling $5.7 million and $11.3 million, respectively. These financial results likely influenced the final sale price.
Fabergé, renowned for its extravagant creations, boasts the Third Imperial Easter Egg amongst its portfolio. Created in 1887, this masterpiece, featuring a solid gold case adorned with sapphires and diamonds, and containing a women’s watch with diamond-set gold hands, was once valued at $33 million. The egg remains in the hands of an unidentified private collector.
Gemfields is set to receive $45 million upon the deal’s closure, which is anticipated by the end of August. The remaining $5 million will be dispersed in the form of quarterly royalties, equivalent to 8% of Fabergé’s revenue. Notably, the deal does not necessitate any regulatory approvals or additional authorizations.
The sale enables Gemfields to concentrate its efforts on its fundamental operations in coloured gemstone mining. These activities encompass the launch of a new ruby processing facility in Mozambique and the growth of emerald mining in Zambia.
Sean Gilbertson, CEO of Gemfields Group, referred to the sale as signifying the conclusion of an era. He stated, “Brands as iconic and beautiful as Fabergé do not change hands very often. We wish the team and Mr. Mosunov every success.”
SMG Capital, under the proprietorship of tech entrepreneur and venture capitalist Sergei Mosunov, plans to maintain Fabergé’s focus on jewellery, accessories, and timepieces. Mosunov also expressed his eagerness to offer exceptional service to existing customers while attracting new brand enthusiasts.
Established in 1842 in St Petersburg, Russia, Fabergé is famed for its intricate, gem-encrusted eggs, which were originally manufactured for the Russian imperial family during the late 19th and early 20th centuries.
What is the essence of the deal between Gemfields and SMG Capital?
The deal entails the sale of Gemfields’ entire stake in Fabergé to SMG Capital for US$50 million.
What are the future plans for Gemfields following the sale of Fabergé?
Gemfields plans to focus on its core operations in coloured gemstone mining, including the launch of a new ruby processing plant in Mozambique and the expansion of emerald mining in Zambia.
What will be the future focus of Fabergé under the new ownership of SMG Capital?
Under the ownership of SMG Capital, Fabergé will continue to concentrate on its jewellery, accessories, and timepieces.
