de Grisogono Shops For Shareholder

Jewelry and watch brand de Grisogono has seen major growth over the past fifteen years, rising from an obscure luxury brand to a coveted staple of the Hollywood elite.  de Grisogono founder Fawaz Gruosi has big desires to see the company continue to grow over the next several years, an objective which will require considerable funds.  To get them, Gruosi and de Grisogono are on the hunt for a powerful shareholder.

According to the Swiss weekly magazine SonntagsZeitsung, de Grisogono is in the process of seeking out a shareholder that could bring in 100 million Swiss francs, while allowing Gruosi to retain a minority voting share within Plan-les-Ouates.  de Grisogono, which scored its initial success with pioneering black diamonds as a trendy item for fine jewelry, has been an independent brand only since May 2007.  At this time, de Grisogono purchased the 49% stake held by the Scheufele family, owners of Chopard.

The brand has set some very ambitious goals, which include doubling its sales by 2011, and reaching a turnover of 300 million (compared to the 135.8 million achieved in 2007). With a growth rate of 16.4% over the past five years and coping with a profit decline from rising material costs and expenses for marketing and distribution, new financing has become a requirement.  In addition, an influx of money would enable de Grisogono to pay off its debts, including a portion of the 50 million franc bank loan that it took to obtain its stake from Chopard.   All of these factors have set the stage for a major luxury group to step in.  

Luxury group titans have made major headlines in 2008, with some of the biggest names in independent luxury.  LVMH and PPR both captured attention earlier in the year, when the former purchased the Hublot watch brand, while the latter acquired a 23% holding in the Sowind Group, which owns both Girard-Perregaux and JeanRichard.  Considering the considerable success of de Grisogono, whose creations are frequently worn by such glitterati as Naomi Campbell, Salma Hayek and Elton John, it is certainly possible that it may be one of the next independent luxury brand to get swept up.