PARIS/NEWYORK May 30 U.S. private equity firm
Catterton Partners is close to acquiring control of John Hardy
after holding exclusive talks with the Bali-inspired jeweller
for more than a month, sources close to the matter told Reuters.
John Hardy, a rival of jewellers in the United States such
as David Yurman, sells Asia-themed wares such $225 silver dragon
earrings as well as men's jewellery, a fast-growing market, with
beads and sailing cord bracelets.
The company is headquartered in Hong Kong, its products are
designed in Bali but the bulk of revenue is generated in the
United States, Canada and the Caribbean.
John Hardy's enterprise value could range between $100
million and $120 million, one source said, adding that the deal
would see the buyer paying back a $45 million redeemable loan to
private equity firm 3i, which owns a 23 percent stake.
"Catterton have been holding exclusive talks with John Hardy
for more than a month and a deal could be announced any time
soon," one source close to the matter said.
A separate source confirmed the transaction could be
Chief Executive Damien Dernoncourt, who took the business
private in 2007 with backing from 3i, controls it through a
holding that includes other investors and creative director Guy
Bedarida and owns 73 percent.
The branded jewellery sector is attracting strong investor
interest because it is one of the fastest growing sub-segments
of the global luxury industry, with jewels regarded as
accessories in the overcrowded handbag market and buoyant demand
coming from wealthy women in both mature and emerging markets.
Broker Bernstein forecast a 10 percent cumulative average
growth rate (CAGR) for the jewellery market between 2013 and
2018 versus 6 percent for the personal luxury market overall.
"We anticipate that the bulk (around 70 percent) of the new
aspirational customers into the market will be from emerging
markets, many of whom will be attracted to jewellery as their
first product purchased within luxury goods," Bernstein said.
The jewellery sector has seen a number of high-profile deals
in recent years with Swatch's $750 million purchase of Harry
Winston and Gucci-owner Kering's acquisition of a
majority stake in China's Qeelin and Italy's Pomellato.
Catterton declined to comment and nobody was available for
comment at John Hardy.
(Writing by Astrid Wendlandt; editing by Stephen Addison)