Gitanjali Gems buys Rogers to widen U.S. presence

By Jasudha Kirpalani

MUMBAI (Reuters) - Indian jewellery maker and retailer Gitanjali Gems Ltd has acquired jewellery chain Rogers to consolidate its retail presence in the U.S., a top official said on Monday.

Gitanjali paid $18.5 million for the U.S. jeweller and a "further investment of $20 million will be made," Chairman Mehul Choksi told Reuters over telephone.

The deal would be funded from internal accruals and cash flows, Executive Director, G.K. Nair told a news conference later.

The acquisition, its second in the U.S., will give Gitanjali 46 retail stores, access to a large consumer base, and boost its expansion plans in north America.

Gitanjali, which owns jewellery brands such as Gili, Nakshatra and Asmi in India, bought a 97 percent stake in another U.S. chain, Samuels Jewelers Inc, in December. Samuels had 97 stores then.

Gitanjali has a target of 175 retail stores across the U.S. in the next six months from about 160 now, Choksi said.

Rogers Jewellers, founded in 1920, targets middle upper income consumers and operates under two brands--Rogers Jewelers and Andrews Jewelers. It has revenues of about $80 million.

The buyout would allow Gitanjali to operate Samuels and Rogers with the same back-end chain from India and provide cost-efficient sourcing, the company said in a statement.