Gemstone miner Gemfields has agreed to sell its luxury brand Fabergé to U.S.-based SMG Capital for $50 million, completing a strategic review launched last year.
The deal includes $45 million upfront and $5 million in royalty payments tied to Fabergé’s future revenue.
The sale marks Gemfields’ exit from the luxury retail sector, allowing the company to focus on its core mining assets, including the Montepuez ruby mine in Mozambique and the Kagem emerald mine in Zambia.
Proceeds will bolster working capital as the company ramps up operations after a challenging 2024.
“Having initiated our strategic review of Fabergé in response to the considerable challenges Gemfields started facing in quarter four 2024, today’s sale marks the end of an era for us,” said Gemfields group chief executive Sean Gilbertson.
“Fabergé has played a key role in raising the profile of the coloured gemstones mined by Gemfields, and we will certainly miss its marketing leverage and star power.”
Buyer Sergei Mosunov, a tech entrepreneur and sole owner of SMG Capital, called the acquisition a “great honour” and pledged to expand Fabergé’s global luxury presence.
“Fabergé will continue to focus on jewellery, accessories and timepieces, and we look forward immensely to providing exceptional service to Fabergé’s existing retail and wholesale customers, and to warmly welcoming new brand aficionados,” he said.
The brand, known for its jewellery and high-end accessories, reported a $5.7 million operating loss in 2024.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
