Berkshire Partners to acquire minority stake in jewellery company Kendra Scott Design
22 December 2016
US private equity firm Berkshire Partners yesterday announced that it would acquire a significant minority stake in jewellery company Kendra Scott Design Inc.
Berkshire Partners did not reveal the size of the stake nor the financial terms of the transaction, but citing sources, Reuters reported that the deal values the Austin, Texas-based company at more than $1 billion.
Kendra Scott, founder of Kendra Scott Design, will continue as majority shareholder and CEO, and Norwest Venture Partners will continue as a minority investor.
Kendra Scott started the business with $500 from a spare bedroom in her home in 2002, but the company has grown into a leading jewellery, home and beauty brand with more than 50 stand alone retail stores across the US and has wholesale and e-commerce operations.
Kendra Scott jewellery is sold at premiere retailers including Nieman Marcus, Nordstrom, Bloomingdale's, Von Maur and over 600 specialty boutiques worldwide.
The brand is well-known for its suite of elegantly designed jewelry pieces as well as lifestyle categories such as beauty, home goods and fine jewelry. The brand also offers the Kendra Scott Color Bar, an innovative jewellery customisation experience available in all Kendra Scott stores as well as on its website.
''Kendra and her team have built an authentic brand that is widely loved,'' said Marni Payne, a managing director at Berkshire Partners. ''The Company's deep focus on its customers, commitment to product innovation and culture of giving back has led to impressive growth. We look forward to partnering with Kendra and her team to support their continued success.''
''We are delighted to have Berkshire invest with us at a very exciting time for our company,'' said Scott. ''Berkshire has significant experience in helping leading brands maximize their potential and a deep appreciation for the Kendra Scott culture and organization.''