Digico Acquires W.B. David’s Leading Jewelers of the World

Digico Holdings Limited yesterday announced that it had finalized the acquisition of the jewelry association Leading Jewelers of the World (LJW) through its newly formed LJOW Holding.

The buyers expect that the association will increase its current $250 million retail market share to $1 billion by 2010. The anticipated growth will result from an increase in association members from the current 44 to 100, and increasing per store annual revenue from $6 million to $10 million.

Jewelry Marketing Company (JMC) is Digico's New York based marketing arm and the company that will be directly responsible for the product support of the LJW association.

JMC's CEO Nehal Modi said "we are excited to be involved with the very best retailers in America through LJW. We look forward to an enduring partnership that will help unlock the extensive value of the association."

Jack Gredinger, executive director of LJW said, "Digico's support system and JMC's significant track record have been exemplary in providing end to end solutions for the independent jeweler. The LJW is primed to fulfill its role as the retail leader in the American marketplace."

Digico is a DTC Sightholder group that through its Gitanjali daughter company offers brands such as Gili and D'damas. Gitanjali Gems, one of the largest manufacturers and retailers of diamonds and jewelry in India, recently announced it was entering the capital market to raise three billion rupees ($67.29 million) to fund a planned expansion in the retail sector.

The LJW association was formed in 2001 by W.B. David, then a DTC Sightholder. Soon after the organization was formed, De Beers announced the creation of a similar group called Diamond Masters of Japan.  In 2003, W.B. David was dropped for the list of Sightholders.

In July 2004 the New York diamond company filed a suit against 90 defendants, including De Beers entities, their principals, the DTC, Diamdel, ad agency J. Walter Thompson, DTC Sightholders, their accountants and others for $100 million, injunctive relief and attachment of De Beers’ U.S. assets. W.B. David alleged that “De Beers’ entire Supplier of Choice program is anticompetitive and illegal under U.S., New York State and probably European antitrust and unfair competition laws.”

The lawsuit settlement is still pending.