Shrenuj takes 84% in Simon Golub for $22mn

Diamonds and jewellery major Shrenuj & Company today announced the acquisition of 84.6% stake in US-based jewellery distributor Simon Golub & Sons for $22.7 million.

The stake buy in the US company, which is ranked among the top five jewellery distributors in that country, opens the entire north American market for Shrenuj's range of diamonds and jewellery, the company said in a statement issued today.

The deal is funded by long-term debt, FCCB and internal accruals.

Commenting on the development, Vishal Doshi, President (Business Development), Shrenuj, said: "This acquisition is in line with our future strategy of getting straight to the retailer to build additional margins and have access to first-hand information regarding change in fashion trends and consumer preferences."

Shrenuj will be utilising the massive distribution system of Simon Golub to run various B2C marketing and branding programmes.

"With Simon Golub, we have an 80-year-old business with a proven track-record among both retail segments of the American jewellery market," Doshi said.