Gemfields has sold luxury jeweller Fabergé to US investment firm SMG Capital for $50 million, aiming to focus on core mining operations after facing operational challenges.

Target Information

Gemfields has entered into a definitive agreement to sell the luxury jeweller Fabergé to the US-based investment firm SMG Capital, led by technology investor Sergei Mosunov, in a transaction valued at $50 million. Fabergé, renowned for its exquisite Imperial Russian Easter eggs, has undergone various ownership changes over the years, with Gemfields acquiring the brand in 2013 for $142 million from the private equity firm Pallinghurst. However, Gemfields has been actively seeking a buyer since late 2024 due to operational challenges, including the suspension of its Mozambique ruby mining activities amid political unrest.

In recent years, Fabergé has experienced a decline in revenue, reporting $13.4 million in 2024, compared to $15.7 million the previous year. CEO Sean Gilbertson highlighted that the sale represents 'the end of an era' for Gemfields, emphasizing Fabergé's significant role in elevating the profile of the company's colored gemstones.

Industry Overview

The luxury goods sector has shown resilience and growth, particularly in markets like the United States, which remains a leading destination for high-value jewelry. The demand for luxury items is closely tied to economic conditions, and despite facing chall