Blackstone acquires International Gemological Institute for $535 million

IGI is the largest certification player globally for lab grown diamonds and the second largest certification player globally for natural diamonds.

While Fosun held an 80% stake, 20% was held by Rollan Lawrie. The deal values ​​IGI at an enterprise value of $535 million.

Established in 1975 in Antwerp, IGI is a global player with a global footprint of 29 laboratories in 10 countries and 18 schools of gemology. IGI is the first gemological laboratory in the world to be ISO accredited for both natural and laboratory grown diamonds. Since 2005, IGI has pioneered the certification of lab-grown diamonds, paving the way for the certification and standardization of a rapidly growing industry.

“IGI has pioneered the certification of natural diamonds, lab-grown diamonds and colored stones, it has become a global market The leader and providing trust to manufacturers, retailers and consumers around the world. We are bringing the best of Blackstone to the business – our operational expertise, capabilities in technology, and global expertise in building businesses to help the company expand its global footprint,” said Mukesh Mehta, Senior Managing Director, Blackstone Private Equity Group. track record.

According to industry estimates, the world’s largest number of lab-grown diamonds retail market Currently at $7 billion and has grown at 15% CAGR over CY19-22. global natural diamond jewelery Retail Sales Estimated to be around $80 billion which is growing at 3% CAGR. Out of this, about 90% of the rough diamonds are polished in India.

“IGI has been a pioneer in developing products to meet the expectations of manufacturers, retailers and consumers. Under the tutelage of Blackstone, we intend to get even closer to the consumer and grow the business exponentially,” said Roland Laurie, Chief Executive Officer of IGI.

“Today, IGI’s business is more diversified and solid with a more globalized landscape,” said Kevin Shikun, Fosun’s co-chief investment officer and co-chairman of Fosun’s subsidiary Yuyuan. , and further focusing resources on key strategies and projects of the company, the release said.

Ever since the geopolitical standoff with China began in June, 2020, leading to Chinese companies pulling out of Indian investments, Fosun has been selling off its portfolio in the country. This is one of the last investments in its nearly decade-long portfolio. Earlier it had sold stake in companies like ixigo, Kisht and Delhivery. It’s also in the process of getting off the trail, Gland Pharma among its other investments.