Samuels Jewelers to be acquired by a DTC sightholder
Monday, December 11, 2006
A major purchase transaction is being prepared in the diamonds' industry: Samuels Jewelers started a discussion with a sightholder from Diamond Trading Company (DTC). The latter is to acquire the majority part of retailer's shares.
There is still not much information about this particular sightholder, except for the fact that it is based in India. The present majority shareholder of Samuels Jewelers is DDJ Capital Management. The representatives of the company do not give any information concerning the potential buyer.
Randy McCullough, the President and CEO of Samuels Jewelers, stated that it would be a great opportunity for the retailer to start a partnership with a DTC sightholder, thus Samuels would be able to re-capitalize its balance sheet, to acquire newer inventory and guarantee itself stable growth in the future.
As for Samuels Jewelers, which is officially called "Samuels, Schubach and Samuels Diamonds", possesses a network of 97 jewelry stores in 18 US states since October 1 this year. The incomes of the retailer at the end of the previous year are estimated to be around $100,000,000.
The current shareholder of Samuels Jewelers, DDJ Capital Management, is a company, which specializes itself in private equity and debt financings. This managing firm began its activity in 1996 and since then has grown to operate capitals of 79 institutional clients (estimated in approximately 3 billion dollars).
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