Gemfields Sells Faberge Brand to Tech Investor for 50 Million Dollars

Gems News: Historic Fabergé Finds aNew Owner

In a landmark move for the luxury jewellery world, Gemfields has officially sold its legendary Fabergé brand to US-based investment firm SMG Capital for $50 million. The deal grants SMG Capital, led by tech investor Sergei Mosunov, complete ownership of the jeweller famed for its intricate Imperial Easter eggs. Under the agreement, $45 million will be paid upon completion on August 28, with the remaining $5 million to be covered through quarterly royalty payments at 8% of Fabergé’s revenue. This Gems News report comes after months of uncertainty, as the sale — first announced in December 2024 — was temporarily paused to resolve Gemfields’ rights issues.

Gemfields sells the famed Faberge jewellery brand to SMG Capital
Image Credit: Gemfields

Why Gemfields Is Selling Now

Gemfields CEO Sean Gilbertson revealed that the sale was triggered by significant operational challenges in late 2024, particularly unrest in Mozambique that disrupted ruby mining. Fabergé, acquired by Gemfields in 2013 for $142 million, has been instrumental in boosting the miner’s global profile. However, Gilbertson acknowledged that while the brand offered unmatched marketing prestige, the company’s current focus must be on stabilising its core mining operations in Mozambique and Zambia. The proceeds from the sale will provide much-needed working capital for the new processing plant at Montepuez Ruby Mining and to resume activities at the Kagem emerald mine.

A Jewel of Heritage and Prestige

Founded in 1842 and transformed under Peter Carl Fabergé in 1882, the brand has long been synonymous with exquisite craftsmanship. Its most famous creations — 50 ornate Imperial Easter eggs commissioned by Russian tsars between 1885 and 1916 — are scattered among prestigious private collections and museums worldwide. After the Russian Revolution, Fabergé’s workshops were seized, forcing the family into exile. The brand went through several ownership changes, including high-profile acquisitions by consumer giants, before its 2009 revival under the Fabergé family name.

The Buyer’s Vision for Fabergé

Sergei Mosunov, a Russian-born venture capitalist based in the UK, expressed pride in becoming the custodian of the storied brand. He emphasized Fabergé’s rich ties to Russia, England, France, and the USA as a unique advantage for global expansion. His vision includes not only preserving Fabergé’s historical prestige but also leveraging its heritage to strengthen its foothold in the modern luxury market.

Challenges In the Luxury Sector

Despite its prestige, Fabergé has not been immune to wider economic pressures. Revenue fell from $15.7 million in 2023 to $13.4 million in 2024 as the luxury goods market softened. Gemfields’ share price has also suffered, dropping about 70% from its 2023 peak due to both operational setbacks and an oversupply in the emerald sector.

Looking Ahead

While the sale represents the end of Gemfields’ direct involvement with one of the most famous jewellery houses in history, it also signals a new chapter for both companies. For Gemfields, the focus now shifts to mining efficiency, production stability, and market resilience. For SMG Capital and Fabergé, the opportunity lies in blending 19th-century artistry with 21st-century luxury trends, potentially opening new markets and reviving interest in heritage jewellery. With fresh investment, strategic direction, and a commitment to maintaining Fabergé’s timeless allure, the brand may well be poised for another glittering era on the world stage.

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