WESTPORT, CT — Compass Diversified has acquired Lugano Diamonds & Jewelry Inc. in a deal valued at more than $250 million.
Based in Newport Beach, CA, and founded in 2004, Lugano “makes one-of-a-kind jewelry for some of the world’s most discerning clientele,” according to a press release. The company sells its merchandise via four retail salons in Newport Beach, Aspen, Palm Beach and Ocala, as well as via pop-up showrooms at Lugano-hosted exclusive events. The events “provide an opportunity for existing or new clients to network among like-minded individuals and to bond over common interests in fine arts, charity and sporting activities.”
Lugano will continue to be led by its current team, and existing owners and management will retain a significant minority stake in the company.
Compass (NYSE: CODI), an investment holding company, purchased the firm for an enterprise value of $256 million, excluding working capital and certain other adjustments upon closing.
“We are excited to bring a growing, luxury goods brand like Lugano to the CODI portfolio of niche-branded consumer subsidiaries,” said Elias Sabo, CEO of Compass. “Lugano’s deep commitment to product design and authentic connection with its target clientele differentiates it from its competitors. We believe that Lugano, as a trusted jewelry advisor offering a rare combination of exclusivity and service, has a sustainable business model capable of generating significant revenues and growth in both the near- and long-term.”
Sabo continued: “From our perspective, Lugano is ideally positioned to benefit from the resources and access to capital that CODI will provide and build on the Company’s vision and capabilities to become the next major jewelry brand. The Company has demonstrated impressive growth, particularly over the past several years, and is in the process of expanding its talented team. CODI intends to support further growth as Lugano invests in its merchandising strategy, including continuing its retail rollout and expanding its event-driven marketing efforts. We look forward to partnering with the Lugano team to achieve new levels of success for the business in order to deliver value for our shareholders.”
Moti Ferder, co-founder and CEO of Lugano, said: “This moment marks the culmination of years of work from the entire Lugano team, and we are incredibly proud to partner with CODI for the next phase of our growth. For over a decade we have sought to deliver one-of-a-kind jewelry through special, curated experiences that stand apart from mainstream jewelry buying experiences. With this dedication to high-quality and authentic connections with our consumers, we have built a loyal, long-term consumer base, and we expect CODI’s support will provide us the resources to introduce more clients to Lugano’s model. Together, we are poised to transform the high-end jewelry retail space for the benefit of our valued clients.”