China's international acquisitions: Chinese GangTai Group bought 1.5 billion euros Italian jewel

On December 23, Gansu Gangtai Holding (Group) Co., Ltd. announced that it acquired 85% share of Buccellati Holding Italia SpA, an Italian jewelry conglomerate worth 195.5 million euros, or 1.463 billion RMB.

Parisian Buccellati boutique, in Rue de la Paix.

The transaction also makes Buccellati Holding Italia SpA value 230 million euros, 6.6 times of the market rate. According to the announcement, this Italian company had 40.8393 million euros, or 2.9752 billion RMB revenue in 2015.

As early as 2013, a local private equity fund, Clessidra SGR SpA acquired 67% stake of Buccellati Holding Italia SpA. Unfortunately, in 2016, the founder of Clessidra SGR SpA, Claudio Sposito passed away. Shortly after, the widow sold Clessidra SGR SpA to Italmobiliare SpA (ITMI.MI).

In May, the market rumors were that Compagnie Financière Richemont SA (CFR.VX) Richemont Group wanted to acquire Buccellati Holding Italia SpA and had exclusive negotiations with Clessidra SGR SpA, but at the end, the two did not reach an agreement.

Since Clessidra SGR SpA holds majority stake of Buccellati Holding Italia SpA, the Buccellati family and the Italian commercial bank Simest SpA jointly hold the remaining minority stake of Buccellati Holding Italia SpA.

After completion of the transaction, the Buccellati family and Lauro Cinquantadue S.r.l respectively hold a 7.5% stake in Buccellati Holding Italia SpA. Lauro Cinquantadue becomes an indirect subsidiary of Clessidra SGR SpA.

From real estate, gold mining, diamond jewelry industry, Gansu Gangtai Group’s acquisition of Buccellati Holding Italia SpA shows that Chinese upgraded level of consumption has developed rapidly in luxury jewelry industry. The company's business structure adjusted and progressed significantly, while overseas acquisitions are in line with national strategy - "along the way".

Buccellati Holding Italia SpA was founded in 1919 by Mario Buccellati. Mario’s son, Gianmaria Buccellati inherited the brand and led the global expansion of the brand in the 1960s. According to Gansu Gangtai Group, at the end of September 2016, Buccellati operated a total of 12 direct stores in Italy, France, Britain, the United States, and 219 wholesale shops, with 28.7363 million euros revenue and net loss 8.85 million euros.

Clessidra SGR SpA focuses on consumer and luxury investments with two funds, Clessidra Capital Partners and Clessidra Capital Partners II, which manage approximately 2 billion euros. Before investing in a 90% stake in Roberto Cavalli SpA in April 2015, Clessidra SGR SpA also invested in apparel brands Harmont & Blaine SpA (35% in 2014), food company Balconi SpA (2011), Cruise Line Moby SpA (2015 investment), gaming company Sisal SpA (2005 investment) and so on.

Original article here