* Bali-inspired jeweller seen fetching $100-$140 mln
* Catterton, TSG among the interested parties - sources
* Jewellery outpacing broader luxury market growth
By Astrid Wendlandt and Olivia Oran
PARIS/NEW YORK, Nov 29 (Reuters) - Jeweller John Hardy isattracting bid interest from a string of U.S. private equityfirms, sources close to the matter said, the latest potentialdeal in a sector outpacing the broader luxury industry thanks inpart to financially independent Asian women.
U.S. buyout groups Catterton Partners and TSG ConsumerPartners are among the firms interested in a jeweller whichdraws its inspiration from the Indonesian island of Bali andsells products including a $425 two-finger silver snake ring anda $1,495 silver-and-gold dragon ring, the sources said.
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.
A sector once dominated by events such as engagements andbirths is now achieving a broader appeal, due partly to thegrowing financial independence of women in emerging markets,particularly Asia, and to ageing populations in mature markets.Older people tend to spend more on jewellery than the young.
"Jewellery is the next big category behind shoes as it iseasy to wear, allows you to show your personality and is nothugely expensive thanks to brands like David Yurman,Alexis Bittar and Ippolita," said Elsa Berry, managing directorof Vendome Global Partners, a financial advisory firm focused onthe luxury industry, in New York.
Bernstein analysts forecast that sales of branded jewellery,which makes up 20 percent of the total market, will grow at acompound annual rate of 8-9 percent from 2012-17, compared with6-7 percent growth for the luxury industry as a whole.
That has driven a pickup in acquisitions of jewellers, withrecent deals including Swatch's $750 million purchase of HarryWinston and Gucci-owner Kering's acquisition of amajority stake in China's Qeelin and Italy's Pomellato.
Private equity firm 3i, which owns 23 percent ofJohn Hardy, is keen to sell the jeweller as part of a generalwinding down of its Asian operations. It is also looking to getback a $45 million redeemable loan to John Hardy that matures inOctober, the sources told Reuters on condition of anonymity.
John Hardy's enterprise value could range between $100million and $140 million, one source said.
Chief Executive Damien Dernoncourt, who took the businessprivate in 2007 with backing from 3i, controls it through aholding that includes other investors and creative director GuyBedarida and owns 73 percent, the sources said.
3i declined to comment. No one at John Hardy was immediatelyavailable for comment.
TRADITIONAL TECHNIQUES
Catterton owns a stake in French high-end crystal makerBaccarat, while TSG has invested in jewellery brand AlexisBittar, a close rival of John Hardy with which it could generatecost savings.
Other private equity firms interested in John Hardy includeTA Associates, which invested in French fashion brand Zadig &Voltaire, and JH Partners, which recently ceded control ofunderwear brand La Perla, the sources said.
Nobody at Catterton, TSG, JH Partners or TA Associates wasavailable for comment on Thursday, the U.S. Thanksgivingholiday.
John Hardy, a rival of jewellers in the United States suchas David Yurman, was founded in Bali in 1989 by a young Canadianart student of the same name who was studying the region'straditional jewellery-making techniques.
Today, the brand's products are still designed in Bali, butthe company is headquartered in Hong Kong.
A separate source said Kering and luxury industry leaderLVMH, which owns Roman jeweller Bulgari, would not beinterested in bidding for John Hardy as the brand was in themore widely accessible segment of the market, an area in whichthe two groups were not looking to invest.
LVMH and Kering declined to comment.
The New York office of investment bank Rothschild handlingthe sale sent out a teaser to potential bidders two weeks ago inwhich it reported John Hardy made earnings before interest, tax,depreciation and amortisation (EBITDA) of $13 million on salesof $75 million in the 12 months to July 30, the sources said.
For the current year to July, the firm is aiming for EBITDAof $15 million on sales of $86 million, the sources added.
About 90 percent of John Hardy's revenue is generated in theUnited States, Canada and the Caribbean, they said.
The United States is the biggest jewellery market in theworld, according to analysts from brokerage Vontobel, with a 29percent share of the global market, followed by China with 11percent and India with 10 percent.
An official deadline for indicative offers has not yet beenset, the sources said.
3i Group (III)