Blackstone acquires International Gemological Institute for around $530 million

Blackstone, a prominent private equity firm, made an announcement on May 21st regarding the acquisition of the International Gemological Institute (IGI) from Shanghai Yuyuan Tourist Mart (Group) Co Ltd, a subsidiary of Fosun, and Roland Lorie, a member of the founding family. Sources familiar with the matter revealed that the deal's enterprise value falls between $525 million and $535 million, as reported by Moneycontrol.

Established in Antwerp in 1975, IGI has emerged as a global leader in providing independent certification services for diamonds, gemstones, and jewellery. With a presence in 10 countries, the institute boasts 29 laboratories and 18 gemology schools. Notably, IGI holds the distinction of being the world's first gemological laboratory to receive ISO accreditation for both natural and lab-grown diamonds. Additionally, since 2005, IGI has been at the forefront of certifying lab-grown diamonds, playing a pivotal role in establishing authenticity and standardization within this rapidly expanding industry.

Mukesh Mehta, Senior Managing Director of Blackstone Private Equity Group, expressed enthusiasm about the acquisition, stating, "IGI has spearheaded the certification of natural diamonds, lab-grown diamonds, and coloured stones, establishing itself as a global market leader. We aim to leverage Blackstone's operational expertise, technological capabilities, and track record in building successful businesses to assist IGI in expanding its global presence."

Roland Lorie, CEO of IGI, commented, "With nearly 50 years of successful operations since our company's inception, we are pleased to entrust Blackstone with taking IGI to the next stage of development. Under Blackstone's patronage, we intend to enhance our proximity to consumers and drive exponential business growth."

Kevin Shikun, Co-Chief Investment Officer of Fosun and Co-Chairman of Yuyuan expressed confidence in the partnership, saying, "We believe IGI is poised for rapid growth on a new journey with Blackstone's global synergy. As the flagship investment in Fosun's consumer sector, Yuyuan anticipates positive financial impacts from this sale, enabling a sharper focus on the company's key strategies and projects."

It is worth noting that the leading diamond certification firm had outstanding debt of $150 million owed to its lenders.

Blackstone also revealed the advisory firms involved in the transaction. Deutsche Bank, Ernst & Young, Deloitte, and Freshfields Bruckhaus Deringer acted as advisors to Yuyuan and Roland Lorie, while KPMG, Simpson Thacher & Bartlett, and Cyril Amarchand Mangaldas provided advisory services to Blackstone.

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