LONDON: Gemfields Group Ltd. said Monday it has signed an agreement to sell its entire interest in Fabergé Limited, the iconic luxury brand, to SMG Capital LLC for $50 million.
Under the terms of the deal, $45 million will be paid to Gemfields upon completion, expected on Aug. 28, 2025. The remaining $5 million will be paid through quarterly royalty payments at 8% of Fabergé’s revenue. The transaction is not subject to regulatory or shareholder approval.
The sale concludes Gemfields’ strategic review of Fabergé, first announced in December 2024 and paused during the company’s rights issue earlier this year. Gemfields said the divestment, along with the discontinuation of other non-core projects, will streamline its operations and strengthen its balance sheet.
Fabergé, known for its heritage in luxury jewellery and objets d’art, operates through its website, boutiques and international wholesale partners. The brand’s net assets were valued at $50.3 million as of Dec. 31, 2024, according to Gemfields’ annual report. Fabergé posted a $11.3 million loss after tax in 2024.
Sean Gilbertson, Gemfields’ CEO, said the sale marks “the end of an era” and praised Fabergé’s role in elevating the profile of Gemfields’ colored gemstones.
“Brands as iconic and beautiful as Fabergé do not change hands very often,” Gilbertson said. “We wish the team and Mr. Mosunov every success as they perpetuate the unrivalled legacy of Fabergé.”
Sergei Mosunov, CEO and owner of SMG Capital, called the acquisition “a great honour” and said Fabergé’s heritage offers opportunities to expand its global presence.
“Fabergé will continue to focus on jewellery, accessories and timepieces,” Mosunov said. “We feel a deep sense of responsibility and incredible inspiration for the work ahead.”
SMG Capital is a U.S.-based investment firm wholly owned by Mosunov, a tech entrepreneur and venture capitalist focused on luxury and heritage brands.
Gemfields was advised by DWF Law LLP and Dyens & Co., while SMG Capital was advised by DLA Piper UK LLP.