Italian luxury jewelry house, Buccellati, will now be majority owned by a privately held Chinese conglomerate and plans to expand into Asian markets
The Italian private equity firm and the Buccellati family, which held 33% of the capital, have announced in a press release that they have sold an 85% stake in the label to the Chinese group, Gangtai, while still holding the remaining 15%. The amount of the transaction was not disclosed. The Chinese conglomerate Gangtai is specialized in the consumer, culture, finance and health industries.
Clessidra has been trying to sell Buccellati for several months, and Swiss luxury group Richemont was tipped as a potential buyer.
The transaction is expected to be completed during the second quarter of 2017. The current management team remains in place for the time being: Andrea Buccellati will retain his role as Creative Director and honorary President, and other family members will keep their roles too, while Gianluca Brozzetti will continue to lead the company as CEO.
The enterprise value of the company is reportedly $282 million. A source close to the deal would not confirm or deny the figure. Company revenues in 2015 were approximately $42.8 million, according to the source.
“We have backed Buccellati for the last three years, and during this time the company’s revenue has grown by 60%. We think it is now ready to set off on a new growth path,” said Clessidra’s General Manager Marco Carotenuto.
Buccellati, founded in Milan in 1919, is one of the most prestigious jewelers in Italy, known for creating pieces using time-honored hand-crafted techniques. The company has an international presence especially in Europe and the United States with branded stores and distribution agreements.
Gangtai Group specializes in the consumer, culture, finance and health industries. Its subsidiary, Gangsu Gangtai Holding (Group) Co. Ltd, is one of largest gold jewelry distributers and a leading internet jewelry retailer in China, and is focused on growing its presence in international luxury, according to the joint statement.
Andrea Buccellati will retain his role as creative director and honorary chairman of Buccellati. Gianluca Brozzetti will retain his role as CEO of Buccellati. Other members of the Buccellati family will also retain their involvement in the business, according to the statement.
“Our family founded this company almost 100 years ago and will continue to be fully involved to support its development, the creative mastery and production craftsmanship that enabled the establishment of a unique and recognizable style in jewelry and silverware,” Andrea Buccellati said. “We welcome the commitment of Gangtai Group to invest significant resources to further develop the Buccellati brand and platform.”