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DD Manufacturing Buys Control of Jacob & Co.
Sep 23, 2004 10:27 AM
By Yigal Grayeff and Sheryl Katz
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(Rapaport…September 23, 2004) Erez Daleyot, the owner and managing director of DD Manufacturing Group of Companies (DDM), told Rapaport News Thursday that the stake his company has bought in Jacob & Co. gives it 51% of voting rights.
Although he declined to disclose the size of the stake, he said it is less than 50% of shares. He also declined to provide financial details.
In a press release distributed Monday, DDM said it will provide a direct supply of rough to Jacob & Co. The deal also allows DDM, which is a sightholder of De Beers Group, Rio Tinto PLC and BHP Billiton PLC, to enter the retail market as part of its overall vertical integration strategy.
The Supplier of Choice (SoC) initiative of De Beers’s Diamond Trading Co. (DTC) requires sightholders to carry out vertical integration and sell directly to consumers, with the aim being to maximize profit and shorten the diamond pipeline.
The founder of Jacob & Co., Jacob Arabo, is a popular designer amongst celebrities. His jewelry has a high diamond content featuring stones from 1 carat round brilliants to large specials and fancy colored diamonds.
DDM is one of Antwerp’s largest diamond manufacturers and one of the world’s biggest suppliers of larger, loose, polished diamonds. The company also owns jewelry manufacturer Daniel K.
Jacob & Co. will open a new flagship store on New York’s 57th Street in November and the two companies are developing an exclusive, branded cut that is due to be launched next year.
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Tags:
BHP Billiton, Consumers, De Beers, DTC, Jewelry, Manufacturing, Rio Tinto, Sightholders
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