L'Azurde inks share purchase agreement to buy Izdiad

L'Azurde for Jewelry Co. on Monday said it has signed a share purchase agreement to acquire 100 percent equity stake in Izdiad Commercial Company of Arabia (Izdiad), the sole-franchisee and operator of TOUS international franchise in the Kingdom, from Tamkeen Industrial & Trading Company.

The purchase price has been agreed based on an enterprise fair value of SAR 188 million and an earn-out payment of up to SAR 25 million, subject to satisfaction of certain levels of net income for the 2020 financial year, the company said in a statement to Tadawul on Monday.

The transaction is expected to be financed by bank credit facilities and cash equity financed by L'Azurde's operational activities.

Izdiad reported a net income of SAR 16.1 million, SAR 19.1 million and SAR 18.8 million in 2015, 2016 and 2017, respectively. TOUS has been present in the Kingdom since 2008 with a local network comprising 22 stores.

The acquisition will help establish a strong presence in the affordable jewelry segment and add s new source of growth and profitability, L'Azurde said.

There are no related parties involved in this transaction, it added.