Bahrain-based alternative assets manager, Investcorp, is buying Danish luxury retailer Georg Jensen. The deal will be worth $140 million.
Declaring that Georg Jensen will be “one of the leading hard luxury brands in the 21st century”, Investocorp plans to expand the brand into Asia; especially China. Investcorp has earlier held stakes in famous fashion labels like Gucci and Tiffany & Company.
Investcorp will acquire the company from private equity group Axcel Capital Partners, and David Chu of Nautica will join as the chief creative director after the takeover. Guy Leymarie, former chief executive of DeBeers Diamond Jewellers, Cartier International and Dunhill, will also join the board.
Georg Jensen founded the eponymous brand in 1904, and sells jewellery, watches and silverware. The brand operates 94 stores across USA, Europe, China, Hong Kong and Japan. The company generated $160 million in revenues last year, and has 1200 employees.
While Investcorp is confident about its decision, some experts are pointing out that it may be a risky move, since the luxury market boom seems to have reached its end. Brands like Burberry and Louis Vuitton, for example, have been facing some difficulties, while other brands too, are seeing sales drop. according to consultancy Bain & Co, global luxury sector is still projected to grow 10% this year, but Europe’s growth will not be more than 5%.