To strengthen its position in the US market, Gitanjali Gems has planned to buy the US-based jewellery retail chain Whitehall Jewellers Holdings, which filed for bankruptcy recently.
Commenting on this, GK Nair, executive director, Gitanjali Gems, said: “We have great interest in the US market and are looking to expand our operation in the United States through the mergers and acquisition (M&A) route. We have enough cash on the balance sheet, which no other company in the industry in India has. We can leverage our balance sheet for any possible acquisition.”
If sources are to be believed, the deal can amount to anywhere between Rs 350 crore and Rs 400 crore.
Whitehall, controlled by private equity firm Prentice Capital Management, operates around 373 retail stores in 39 US states under the Whitehall and Lundstrom brand names. The company had recently asked for protection from a US bankruptcy court. According to the court filing, the company wants to sell itself by July 18.