An Indian jewellery manufacturing company has purchased The Jewellery Group, which operates Zamel’s and Mazzuchelli’s stores around Australia.
The Mumbai-based M Suresh Group finalised its purchase of TJG from Quadrant Private Equity last week.
Although the terms of the transaction have not been disclosed, most industry sources suggest that TJG was bought for “around $20 million” – a significant drop from the $48 million Quadrant is believed to have purchased the stores for in 2007.
According to Suresh and TJG, the new partnership will “ensure that TJG has the best diamond range sourced at the best prices on the best terms in the Australian market”.
Under the sale agreement, TJG will remain headquartered in Adelaide and the company’s senior management team, including CEO Adrian Murphy and CFO Lachlan Gunn, will remain in their current roles. In addition, all Zamel’s and Mazzuchelli’s stores will continue to operate under their respective brand names.
Speaking to Jewellery World after the announcement of the long-rumoured sale, Murphy said TJG would continue to operate with its “strategy of controlled profitable growth”.
“The partnering of TJG with M Suresh is consistent with our business objective to be the preeminent jeweller in Australia,” he said.
“It is our desire to present to our customers the largest range of jewellery at the best prices. Through this unique partnership with M Suresh we will span the distance from mines to market in a contemporary retail shopping experience.
“To that end, TJG and M Suresh will significantly complement one another’s strengths in product development and jewellery manufacturing, as well as the retailing of diamond jewellery products.”
TJG currently trades from 102 Zamel’s stores (including 1 Budgen’s) located in WA, SA, Victoria, NSW, Qld, Tasmania and ACT as well as 27 Mazzucchelli’s stores (including 1 Vivien’s store) located in WA, SA and the ACT.