Baugur sees sparkle in Goldsmiths

British jewellery chain Goldsmiths was today reported to be in the sights of the Icelandic retail group Baugur.

A deal with private equity group Alchemy Partners is being finalised that will value the 165-strong chain of Goldsmiths stores at £110m (€165.4m), according to the Sunday Times.

It would give Baugur an even bigger foothold in the UK retail sector following the acquisitions of toy shop Hamleys and fashion chain Oasis last year.

It is thought that Goldsmiths chairman and chief executive Jurek Piasecki will stay in his posts after the change of ownership.

His majority stake in the company will be diluted by the deal with Baugur to just 15% but other managers will increase their interest, the newspaper stated.

Goldsmiths – the second largest jewellery retailer in the UK behind H Samuel and Ernest Jones owner Signet – has been one of the successes on the high street during a difficult period for many retailers.

Baugur is thought to be planning to expand Goldsmiths and take the brand across the Channel to Europe.

It is also understood to be seeking to lift the 225-year-old retailer’s profile in department stores by securing extra concessions space.

In addition to Hamleys and Oasis, Baugur has a 22% stake in the Big Food Group, 10% in House of Fraser and 4% holding in Somerfield.

Fashion group Arcadia, which runs the Top Shop and Miss Selfridges brands, was a previous target of the Icelanders but they eventually lost out to entrepreneur Philip Green.