Mumbai, July 27: Jeweller Rajesh Exports (REL) today said it had acquired Switzerland-based Valcambi - the world's largest gold refiner - for $400 million (Rs 2,560 crore).
Rajesh Exports sealed the all-cash deal following a global sales process conducted by Valcambi's owners, led by US-based Newmont Mining Corp with a 60.6 per cent holding.
Rajesh Exports, through its wholly owned subsidiary in Singapore, has fully acquired European Gold Refineries, the 100-per-cent holding company of Valcambi. Grant Thorton assisted REL in due diligence, while Credit Suisse will fund nearly 30-35 per cent of the acquisition cost.
Valcambi has processed and sold 945 tonnes of gold and 325 tonnes of silver on an average per year during the last three fiscals, which is higher than the annual consumption of gold in India.
A press statement from Rajesh Exports said for the last three years, the company generated average revenues of over $38 billion.
"The coming together of REL and Valcambi would expand the global gold business and would prove very productive for the future global plans of REL group. We will seamlessly integrate Valcambi into REL group and would continue with the professional management of Valcambi," Rajesh Exports chairman Rajesh Mehta said.
He added that the acquisition would add significantly to the revenues and profitability of the group.
Early this month, the REL board had approved an acquisition in Europe in the range of $250-500 million.
According to REL, the buyout will help it to become an integrated player covering precious metal refining and gold jewellery manufacturing.
REL said it had set up a 100-per-cent subsidiary - REL Singapore Pte Ltd - for global acquisitions and the procurement of raw gold from mines.
Further, REL Singapore has set up a subsidiary in Switzerland called Global Gold Refineries Ltd (GGR). The Singapore entity has acquired 100 per cent of European Gold Refineries in an all-cash deal, which in turn holds 100 per cent of Valcambi.
Valcambi CEO Michael Mesaric said, "The coming together of REL and Valcambi will ensure Valcambi improves on its global share of gold business, by opening up new markets in India, West Asia and China."
During 2014-15, REL and its subsidiaries consumed more than 170 tonnes of gold. For the year ended March, the company posted a net profit of Rs 655 crore on revenues of Rs 50,462 crore.
