Compass Diversified (NYSE: CODI) has announced the acquisition of Lugano Diamonds & Jewelry, Inc. for an enterprise value of $256 million. After the acquisition of Lugano Diamonds, its current leadership will continue the leadership position in the firm. The current owners and management will maintain a substantial minority stake in the firm.
Lugano stated that this acquisition signals the end of years of work from the entire Lugano team, and the firm is delighted to collaborate with CODI for the next phase of its growth. On the other hand, CODI believed that the deep promise of Lugano to product design and genuine connection with its target clientele distinguishes it from its competitors.
Furthermore, the firm believes that Lugano which is a trusted jewelry advisor providing an unusual combination of uniqueness and service. Moreover, it has a viable business model capable of creating significant revenues and growth in both the near- and long term. In addition to this, CODI considers that Lugano is ideally positioned to reap from resources as well as access to capital that CODI will offer and build on the vision of the firm and capabilities to become the next major jewelry brand.
Lugano has recently garnered attention because of its strong performance, and it is striving to add new talent to its team. CODI is planning to provide support for further growth as Lugano invests in its merchandising strategy. It also includes its retail launch and broadening its event-driven marketing efforts.