Gemfields has sold its interest in Fabergé to SMG Capital LLC, an American investment and technology firm run by Sergei Mosunov. The $50 million deal was completed successfully at the end of August and has been extensively covered in the press.
Gemfields decided to stop working with Fabergé after a strategic review at the end of last year. It was trying to cut expenses, simplify operations, and free up some additional resources. This was a necessary measure to take amidst the crisis in Mozambique, as one of its major ruby mines, Montepuez, is in this country.
Gemfields bought Fabergé 12 years ago, and they immediately saw the benefit of connecting this luxury brand with legacy of rubies and emeralds.
The brand was originally founded in Russia by Peter Fabergé at the start of the 19th century. It got well-known because of its elaborate eggs made for royalty. The pieces were made with the minutest details and quickly became famous not only among Russian noble people, but in Europe as well. Peter’s love for bright designs, multi-colored gems, and enameling was reflected in all his works.
During the last ten years, as part of Gemfields, Fabergé has expanded its product line, which now includes high-end accessories (for example, watches and custom bracelets).
According to Mosunov, SMG Capital plans to proudly keep up Fabergé’s legacy and at the same time develop this brand by introducing some innovations. Mosunov’s company focuses on upscale businesses with well-known histories and adapts them to modern-day reality.
After the sale, Gemfields won’t be directly involved in the luxury customer market any longer. Thus, the miner will be able to concentrate on its main gemstone operations, and Fabergé will begin a new chapter under U.S. ownership.
Sometimes it’s sad to see such legendary companies change owners. After all, there is always an ideal image in our heads where a family business is passed down from one generation to the next within one dynasty. However, the reality often turns out to be different in times of crises. In any case, the Olertis team hopes the Fabergé brand will be able to live up to the glory of its royal past and continue to proudly bear its name.
