Renaissance Global Ltd’s step-down subsidiary Renaissance Jewellery Middle East FZCO has agreed to make a strategic investment in branded jewellery company Naman Trading FZC.
The two companies have signed a Share Purchase Agreement (SPA), with the acquisition expected to be completed within 24 months. The cash consideration is $220,000 a share.
Initial investment of 20%
Renaissance Jewellery Middle East will initially acquire a 20% stake in Naman Trading, with an option to acquire the remaining equity at a later stage.
The investment will give Renaissance Global an entry into the branded jewellery market in the Middle East.
Focus on merchandising and supply chain
As part of the arrangement, Renaissance will provide Naman with strategic merchandising and design support.
It will also help optimise Naman’s supply chain, with the aim of improving margins and supporting sales growth.
Naman has ₹200 crore revenue run rate
Naman is engaged in the marketing and distribution of a fast-growing jewellery brand in the Middle East.
The company has an annual revenue run rate of about ₹190-200 crore.
Naman is not a related party of Renaissance Global. None of the promoter or promoter group entities of Renaissance Global has any interest in the proposed investment.
Renaissance expands branded jewellery presence
Renaissance Global is a global player in the luxury lifestyle and branded jewellery industry. It designs, manufactures and supplies diamond-studded and gold jewellery to markets including North America, Europe and Asia.
The company also has global licensing agreements to manufacture jewellery for brands including Disney, Marvel, Star Wars and Hallmark.
The investment in Naman will allow Renaissance to combine its design, merchandising and manufacturing capabilities with Naman’s Middle East distribution presence.