Buccellati rumored to be exploring a sale - sources
Buccellati, the Italian producer of high-end jewellery, is rumored to be exploring a sale, having attracted bid interest from a string of strategic players, one source close to, and two people briefed on the situation said.
Potentially, this wave of interest could push PE sponsor Clessidra to consider offers for Buccellati this year, without a formal auction, the sources said.
Gianluca Brozzetti, Buccellati's CEO, did not comment on the matter. A spokesperson for Clessidra also declined to comment.
Buccellati has seen mounting interest from strategic suitors in recent months, the two sources said. Management has already received unsolicited offers from some bidders, one of the sources said, without giving any names. Although Clessidra and the management aim to create an Italian giant in high-end jewellery, they could change their ideas and seriously consider approaches in the event that international fashion houses such as Kering or LVMH submit relevant offers, the same source continued.
In March 2013, Clessidra acquired the majority of Buccellati. According to rumours, the private equity firm paid EUR 80m for a 70% stake. At that time, Buccellati had a turnover of EUR 60m a year.
Buccellati is focusing on its rebranding efforts and is in expansion mode, the second source recalled, mentioning Switzerland-based Richemont - which has brands such as Cartier, Van Cleef & Arpels, Montblanc; Burberry, Tiffany & Co and Swarovski could potentially be interested in acquiring jewellery companies such as Buccellati.
According to the source, there is a strong PE appetite for luxury assets, with a specific element to consider. Citing a McKinsey report, the source said that jewellery industry is still primarily local, and the ten largest jewellery houses will double their market share by 2020, primarily by acquiring local players.