Renaissance Global Limited updates on acquisition

Renaissance Global Limited (RGL), an emerging player in the global branded jewellery space, would like to share that its wholly owned subsidiary Renaissance Jewelry New York has, acquired the business of Everyday Elegance Jewelry (Everyday Elegance). As per the agreement, RGL has acquired 100% assets of Everyday Elegance for a total consideration of USD 0.9 million. ~35% of this acquisition cost is towards inventories of Everyday Elegance. The Company intends to fund the investment through cash on balance sheet.

This acquisition is in-sync with RGL's strategy to expand presence in the high-margin global Branded Jewellery space. Over the last few years, the Company has partnered with global iconic brands such as Hallmark & Disney across key markets. RGL designs, manufactures and supplies branded jewellery through B2B and D2C distribution channels. This transaction will strengthen RGL's resolve to expand its presence across global ecommerce marketplaces.

Headquartered in California, United States, Everyday Elegance specializes in high-quality metals such as 14K gold, platinum and sterling silver with top-grade diamond alternative gemstones such as cubic zirconia moissanite. It has a portfolio of over 200 products with a strong presence across various ecommerce marketplaces, primarily on Amazon.com. In the fiscal year 2020, Everyday Elegance Jewelry's revenues stood at USD 1.2 million. The company has a healthy balance sheet profile with zero net debt. The business is expected to contribute operating margin in the range of 18% -20%, in line with RGL's current online D2C business.

Shares of RENAISSANCE GLOBAL LIMITED was last trading in BSE at Rs. 723.45 as compared to the previous close of Rs. 725. The total number of shares traded during the day was 10859 in over 937 trades.

The stock hit an intraday high of Rs. 760.1 and intraday low of 720.2. The net turnover during the day was Rs. 7964917.

Source : Equity Bulls

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