Aber Diamond enters into agreement to purchase Harry Winston
13 Sep '06
3 min read
Aber Diamond Corporation announced that it has entered into an agreement to purchase the minority shareholders' interest in world-renowned jeweler, Harry Winston, for approximately US$157 million giving it full 100 percent ownership.
The history of the House of Harry Winston dates back nearly 100 years and includes some of the most famous diamonds in the world, from the legendary Hope Diamond, now on permanent display at the Harry Winston Pavilion at the Smithsonian Institution, to the magnificent jewels owned by royalty, movie stars and heads of state.
Harry Winston's dimensional and fluid designs, flawless craftsmanship and unparalleled quality have set the standards for diamond jewelry.
Aber purchased an initial 51 percent stake in Harry Winston in April 2004 for US$85 million and has since increased its equity interest to approximately 53 percent. The original purchase agreement included an option allowing Aber to purchase the balance of Harry Winston in 2010.
"The past two and half years have demonstrated the tangible benefits of linking the marketing of rough diamonds to a high-end diamond retailer in the form of improved margins at both ends of the business," said Mr. Robert Gannicott, Chairman and CEO of Aber. "This acquisition solidifies our position as the world's premier publicly traded diamond company."
The 100 percent ownership of Harry Winston strengthens Aber's strategic position as a diamond company comprising the two most profitable segments of the diamond pipeline - mining and retailing. This positioning delivers premium rough diamond pricing through market insight provided by polished diamond buying.
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