Gemfields Agrees to Sell Faberge to SMG Capital for $50 Million

Gemfields Group has agreed to sell its luxury brand Fabergé to U.S. investment group SMG Capital for $50 million, with $45 million payable upon completion expected on August 28, 2025, and the remaining $5 million through quarterly royalties based on 8% of Fabergé's revenue. This sale concludes a strategic review of Fabergé initiated by Gemfields in late 2024 as part of efforts to streamline the business and strengthen its balance sheet. The proceeds will be used to provide working capital for Gemfields' mining operations in Mozambique and Zambia, particularly at the Montepuez Ruby Mining project. Fabergé, famous for its jewelled eggs commissioned by the Russian Imperial family, was acquired by Gemfields in 2012 to enhance its gems business and brand profile. Both Gemfields and SMG Capital expressed optimism about the transaction, with Gemfields' CEO acknowledging the end of an era and SMG's owner emphasizing opportunities to expand Fabergé's presence in the global luxury market. The deal is not expected to require regulatory approvals and marks a shift for Gemfields towards focusing on its core mining operations.