PARIS, July 31 (Reuters) - U.S. private equity firmCatterton Partners has acquired Bali-inspired jeweller JohnHardy for an undisclosed sum, closing a transaction that tookmonths to negotiate.
The deal, which Reuters first reported in May, highlightsgrowing investor interest in a sector outpacing the broaderluxury industry thanks in part to financially independent Asianwomen.
While luxury watchmakers are struggling with a crackdown inChina on gift-giving to officials and several fashion andaccessories brands point to slowing growth in a range ofemerging markets, jewellers are proving more resilient.
John Hardy, a rival of jewellers in the United States suchas David Yurman, sells Asia-themed wares such as $225 silverdragon earrings as well as men's jewellery, a fast-growingmarket, with beads and sailing cord bracelets.
The company is headquartered in Hong Kong, its products aredesigned in Bali but the bulk of revenue is generated in theUnited States, Canada and the Caribbean. The brand just signedsupermodel Cara Delevingne to be the face of its new campaign.
As part of the transaction, Catterton acquired a 22.4percent stake held by British private equity firm 3i.
Total proceeds to 3i including the stake, preferred sharesand dividend repayments will be around 26 million pounds, with afurther 2 million in anticipated deferred consideration, 3i saidin a separate statement.
The overall terms of deal were not disclosed but sourcesclose to John Hardy had given the jewellery an enterprise value- equity plus debt - of between $100 and $120 million.
Damien Dernoncourt, who was chief executive of John Hardyand its controlling shareholder, will become non-executivechairman and retain a stake in the company, Catterton said.
He will be replaced by Robert Hanson, former CEO of AmericanEagle Outfitters and former global president of Levi's.
"We are confident that John Hardy offers substantial upsidethrough multiple paths for expansion, and look forward toworking with Robert and the entire team at John Hardy tocapitalize on new market opportunities and realize the company'ssignificant potential," Michael Chu, managing partner atCatterton, said.
Catterton also owns around 22 percent of Paris-listedcrystals specialist Baccarat since 2012 and acts inconcert with investment firm Starwood Capital which controls thecompany.
John Hardy was advised by investment bank Rothschild. (Reporting by Astrid Wendlandt; Editing by Mark Potter)
3i Group (III)