UK. Following the recent sale of the Asprey and Garrard jewellery business to an investment group led by Sciens Capital Management and Plainfield Asset Management, Asprey International Limited has sold 100% of the Garrard business to the The Yucaipa Companies.
With the backing of Yucaipa, which has a track record of making successful investments in retailers, Garrard will continue to expand its network of retail locations and focus on offering important jewels and bespoke silver, Asprey and Garrard said in a statement.
Since its re-launch in 2002, Garrard has experienced significant sales growth. Retail and wholesale sales for the fiscal year ending March 2006 are expected to increase by +51% versus the prior year. In the past 12 months, Garrard has opened an additional 14 points of sale, bringing total distribution to 24 points of sale.
“As the world’s first luxury jewellery brand, Garrard represents a compelling and unique investment opportunity for Yucaipa,” said Ron Burkle, Managing Partner of Yucaipa.
“We are committed to preserving the traditions of Garrard, which has been the house of the Crown Jeweller since 1843, and introducing the brand to luxury consumers in new markets. We believe that, given its heritage, Garrard is well positioned to participate in the growing market for luxury jewellery with a unique point of view under the direction of Robert Procop as Garrard’s Managing Partner and the existing management and creative team.”
Asprey and Garrard brands registered significant sales growth in all “retail channels,” with Asprey at +15% versus the previous year and Garrard at +51% versus the previous year due to an expanding retail distribution network.
At the end of March 2006, Asprey will have 15 points of sale (of which seven opened in the last twelve months) and Garrard 24 points of sale (of which 14 opened in the last 12 months). The new points of sale are located in major international cities such as Moscow, Dubai, Kuala Lumpur, Osaka, Hong Kong; in key department and speciality stores such as Harrods in London, Colette in Paris, Bergdorf Goodman, Jeffrey and Maxfield in the US; Isetan, Sogo, Hankyu and Daimaru in Japan; and onboard major airlines such as British Airways, All Nippon Airways and Japan Airlines.
Asprey opened its first airport store at London Heathrow terminal four at the end of 2004.
At the time of the acquisition of Asprey and Garrard by Sciens and Plainfield, Asprey and Garrard CEO Gianluca Brozzetti said: “We are encouraged to have reached agreement with Sciens Capital Management and Plainfield Asset Management for the acquisition of Asprey and Garrard. We have completed the expensive ‘first phase’ of our project and we look forward to the future development.”
John Rigas, Chairman and CEO of Sciens Capital Management, commented: “Asprey and Garrard are two of the most prestigious and historic British luxury brands. Our intention, as the new shareholders of Asprey and Garrard, is to assist and support Management lead by Gianluca Brozzetti in expanding the brands worldwide and restoring them to their historical position of prominence.”
Max Holmes, founder and Chief Investment Officer of Plainfield Asset Management, said: “We are particularly confident in the strength of the brands, which have prospered for more than two centuries and we are very excited by their current growth prospect worldwide.”
MORE STORIES ON ASPREY AND GARRARD
Asprey opens at Heathrow; makes inflight gains – 29/12/04
Heathrow T4 lands first Asprey travel retail store – 25/10/04
Morgan Stanley buys into Asprey expansion – 04/02/04
Cadman takes top travel retail role for Asprey and Garrard – 21/07/03
