Centuries-old French crystal maker Baccarat said Friday it is being taken over by a Chinese investment fund in a deal that would allow it to accelerate its international expansion plans. Baccarat said in a statement that China's Fortune Fountain Capital had signed a commitment to acquire a stake of 88.8 percent in the company from US investment funds Starwood Capital Group and L Catterton.
Under the agreement, FFC will pay 222.70 euros per share, valuing Baccarat at around 185 million euros ($207 million). That is below the closing price of Baccarat shares on Thursday of 259.90 euros and the current market valuation of 215 million euros.
The luxury maker of tableware, chandeliers and jewellery employs a workforce of around 500 and generated a net profit of 2.2 million euros on sales of 148 million euros in 2016. The sale will permit "financing an international expansion plan" said the company's chief executive, Daniela Riccardi, who will remain at the helm. She said that "compared to other luxury brands (Baccarat) has a limited presence in the world due to its limited number of boutiques," she added. Baccarat, founded in 1764, has around 60 boutiques around the world. The firm said that FFC had committed to make "significant" investments in its core areas of activity and pledged to "maintain and centralise all production and employment and will honour the company's 250-year heritage".
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