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L’azurde reinforces its jewelry portfolio and grows its customer base by diversifying revenues and complementing its range through the TOUS brand
Acquisition represents an important milestone for L’azurde as the Company enters the affordable luxury jewelry global segment
Riyadh, KSA; August 2018,06: L’azurde Company for Jewelry (“L’azurde” or “the Company”), the largest gold and diamonds jewelry designer, manufacturer, wholesale and retail distributor in the Middle East, announced today it has signed the Share Purchase Agreement (SPA) to acquire %100 of the equity of Izdiad Commercial Company of Arabia (Izdiad), the KSA franchisee of the TOUS international jewelry brand. This represents a major development for the Company, establishing a strong presence in the affordable luxury jewelry segment and adding a new source of growth and profitability. Izdiad has demonstrated continuous solid growth in revenues and profits since its establishment, with its 2017 net income reaching SAR18.8 Million.
With a track record of almost 100 years, TOUS is an international lifestyle brand focused on affordable luxury with more than 620 stores in over 53 countries. As a franchisor, TOUS designs, manufactures and sells a wide range of products including fine jewelry with diamond, gold and silver, its core business, and handbags, fragrances, watches, glasses and accessories for men, women, and children. TOUS has been present in the KSA market since 2008 with a network today of 22 stores across the Kingdom.
Commenting on the acquisition, Mohammed Al-Shroogi, Chairman of L’azurde, said: “We are very excited to have closed such a successful deal. We are confident that this acquisition will strengthen L’azurde’s position in the market, as well as have a positive impact on our revenues and profits. The acquisition of TOUS franchisee will allow L’azurde to complement its brand portfolio in key categories, in particular, the accessible jewelry lifestyle segment, which provides solid margins and profits.”
Sélim Chidiac, Chief Executive Officer of L’azurde, said: “We are extremely proud to partner with TOUS, a world leader in affordable jewelry, and we see a significant potential to grow TOUS in KSA and the region. This transaction represents a great strategic fit with our vision to enter the affordable jewelry segment and diversify our portfolio into a very new product offering. Indeed the fresh and sophisticated TOUS collections complement our existing range perfectly, which will help us reach new consumers and address different purchasing occasions. We look forward to working closely with TOUS and fully developing this new growth platform in-line with global trends.”
Carlos Soler-Duffo, Commercial Managing Director at TOUS, said: “We are incredibly excited by the considerable opportunities this partnership holds for us and look forward to growing in KSA and expanding our footprint in the Middle East. Our business has grown well over the last years with a strong leading position in KSA and we are confident that L’azurde’s experience, management team, and corporate profile will help us grow TOUS to its full potential in KSA.”
The transaction is expected to be financed by bank credit facilities and cash equity financed by L’azurde operational activities. The acquisition is subject to customary conditions and is expected to close no later than October 31, 2018.