At the end of September, luxury giant Richemont announced a new purchase: high end jewelry brand Buccellati. The conglomerate said that it had purchased 100% of the renowned Italian jewelry house for an undisclosed price, and that the transaction would have “no material financial impact on Richemont’s consolidated net assets or operating result for the year ending March 31, 2020.” This marks the end of 100 years of family ownership for Buccellati.
After a volatile ten months, Richemont’s share price is still up 10%, year to date
Source: Yahoo Finance
Johann Rupert, Richemont’s chairman, described Buccellati as one of the few “good fits” for Richemont in the Jewelry world. He said: “Distinguished by strong heritage, craftsmanship and family spirit, Buccellati is one of the few maisons in the dynamic branded jewelry market that is complementary to our existing jewelry maisons, in terms of style, origins and craftsmanship. Buccellati meets the needs of today’s customers who are looking for creative jewelry, with a highly distinctive style. With them, we share a culture of constant quest for creativity, innovation, quality and excellence. We look forward to ensuring the long-term development of this unique jewelry maison.”
Andrea Buccellati, Buccellati’s honorary chairman and creative director, added: “We are proud to join Richemont, a family-spirited group and nurturer of prestigious luxury maisons, with an undisputed expertise in jewelry. We value their long-term strategic thinking and look forward to seeing the potential of Buccellati realized as part of Richemont.”
Disclosure
Dominion holds Richemont in its Global Trends Luxury Fund.
Author: Theo Leworthy
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