Recently Harry Winston, sold its Diamond Corp Unit to the Swatch Group AG. This sale didn’t come for a few pennies either, this unit went for $ 1billion . As some of you may not know, this once very well know high end jewelry brand has diversified and is seeking more investments in the diamond mining industry. Apparently, the mining side of their business has produced double the general profits.
With the newly aquired $1billion in cash, as per Chief Executive Officer Robert Gannicott, the Toronto-based company is interested in buying the remaining 60 percent stake of the Diavik mine it doesn’t already own from Rio Tinto Group.
The sale of the luxury unit could make the company more attractive to investors looking for exposure to diamond mining, said Des Kilalea, an analyst at RBC Capital Markets in London.
This deal is on par for the former luxury brand group, just looking at the numbers id say it was a no brainer for them. The company reported sales of $290.1 million and gross profits of $48.7 million for its mining unit in the fiscal year ended Jan. 31, compared with $411.9 million and $19.4 million for the jewelry business. This sale also helps with some debt that the company has. Never fret former Harry Winston jewelry supporters, there are more brands you can look towards appreciating. After all the world of jewelry is just one big adventure.
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