FountainVest, Spring Capital buy into Chinese jewelry distributor

According to the companies, the initial $41.38 million commitments includes a $31.40 million investment in newly issued Enzo shares as well as $9.98 million to purchase existing shares of Enzo from LJ International, a listed global jewelry marketing and distribution firm. FountainVest and Spring Capital will hold their joint 28.27% stake in the form of redeemable convertible preferred shares, which will be a newly created class. The deals also gives the PE investors rights to make a further investment, $25.88 million in the future to acquire up to 10.35% of Enzo, and representatives from the firms will join Enzo's board.

A statement from the companies add that, "based on the terms of the agreement, the parties intend to enhance shareholder value by spinning off the Enzo retail jewelry division through an initial public offering of Enzo on an international stock exchange in the future."

The new capital will be used for store openings, marketing expenses and general working capital, and as part of the transaction. Enzo is a wholesaler that distributes products to fine jewelers, department stores, national jewelry chains and electronic and specialty retailers throughout North America and Western Europe. Its product lines span all major categories, including earrings, necklaces, pendants, rings and bracelets.

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• Topics
• Greater China
• Investments
• FountainVest Advisors
• Spring Capital Asia