Indian jewellery designer and manufacturer Renaissance Jewellery Ltd has acquired US-based Jay Gems for ₹180.84 crore ($26 million), adding a globally popular brand to its portfolio and entering new markets such as China.

The deal will also help Renaissance Jewellery tap into the exclusive licence agreement the New York-based firm has with Enchanted collection by Disney Fine Jewellery, the biggest licensing company in the world, with $55.1 billion in global sales in 2017. Disney’s Enchanted collection features a variety of designs ranging from ear-rings, rings and pendants.

Jay Gems’ clientele includes Zale, JC Penny, Signet, H Samuel, Fred Meyer, Helzberg, Peoples, Charm, Reeds and Riddles, with a presence across the US, the UK and Canada.

“In 2016, RJL signed a licence agreement with Hallmark to launch the Heart of Hallmark Jewellery collection. The new acquisition is also in line with our strategy to secure licences for global brands,” Sumit Shah, Vice-Chairman, Renaissance Jewellery Ltd, told BusinessLine .

“The acquisition is highly value accretive, adding a globally popular brand to our portfolio. This also gives us potential to enter new geographies like China. This will build synergies and save cost. It will contribute an EBIDTA of $7-8 million by 2020-21. We see the synergies to start showing results in 12-18 months,” he added.

In FY 2018, Renaissance Jewellery posted a turnover of ₹1,825 crore, growing at 24 per cent over FY17. Jay Gems earned $79.54 million (₹554 crore) in FY 17, with half of the sales coming from its Enchanted collection.

Renaissance Jewellery used its wholly owned American subsidiary Renaissance Jewellery New York (RJNY) to acquire Jay Gems, funded by internal accruals. Renaissance is the largest manufacturer and supplier of branded studded jewellery to major global retailers in the US, Canada, Europe, West Asia and Asia.

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