China’s Fosun Group and Lorie Holding have sold International Gemological Institute (IGI) to a division of Blackstone Group for $569.65 million.
The news was announced in a statement from Fosun subsidiary Shanghai Yuyuan Tourism Mall, which can be seen in English here.
The grading lab’s buyer is BCP Asia II Topco Pte., a Singapore company wholly owned by a private equity investment fund controlled by Blackstone Group, the statement said.
According to the statement, as of Dec. 31, 2022, IGI’s assets were approximately $83.22 million, and its liabilities totaled around $24.2 million. Its operating income was estimated at $94.56 million in 2022; net profit, $34.51 million.
Fosun has owned 80% of the lab, through Alpha Yu BV, a subsidiary of Shanghai Yuyuan Tourism Mall. The other 20% was maintained by Lorie Holding BV, controlled by IGI’s current CEO Roland Lorie.
IGI first acknowledged it was up for sale last year. India’s Economic Times reported the Blackstone deal was pending Thursday.
Fosun will get $455.38 million for its 80% stake, which it purchased in 2018 for $101.8 million. Lorie Holding will receive $113.85 million for its 20% share. At press time, it was unclear if Lorie will continue as CEO, or if other changes were pending.
IGI confirmed the sale to JCK but declined further comment, saying a statement will be issued this weekend.
Founded in 1985, Blackstone is the world’s largest alternative asset management company, overseeing $991 billion in assets. IGI was founded in 1975 and has 25 diamond grading labs throughout the world.
(Photo courtesy of International Gemological Institute)
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