Aber Diamond enters into agreement to purchase Harry Winston
13 Sep '06
3 min read
Aber has been able to leverage its role as a supplier of rough diamonds to secure a more reliable source of the high-quality polished diamonds required by Harry Winston to support continued growth.
Since the initial investment, Harry Winston sales have grown from approximately US$128 million for the full twelve months of fiscal year 2004 (including two months that were prior to Aber's acquisition), to US$191 million for fiscal year 2006.
The transaction values Harry Winston, on an equity basis, at approximately US$330 million. Aber will finance the acquisition through a combination of cash resources and an increase to Aber's existing credit facility without impacting the existing dividend policy.
The acquisition and the expanded credit facility are expected to close by the end of September 2006.
Aber was advised on this transaction by Rothschild in both London and Washington.
Aber Diamond Corporation is a specialist diamond company focusing on the mining and retail segments of the diamond industry.
The Company supplies rough diamonds to the global market through its 40 percent ownership in the Diavik Diamond Mine and prior to this transaction owns approximately 53 percent of Harry Winston Inc, the premier retailer of diamond jewelry.
Founded in 1932, Harry Winston is one of the world's most prestigious branded diamond jewelers, providing high-end diamond jewelry and timepieces Known as "The King of Diamonds", Harry Winston is one of the World's leading luxury goods brands.
The name is synonymous with the most famous gemstones and jewelry designs in the world, including the Hope Diamond, the Jonker Diamond, and the Taylor-Burton Diamond.
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