Samuels Jewelers in Search of New Opportunities Mon, 11 December 2006 Samuels Jewelers, Inc., representing one of the major specialty fine jewelry retailers, currently carries negotiations with an India-based Diamond Trading Co. sightholder. The main point of the discussion is purchasing a majority ownership of the retailer by the sightholder. A sightholder refers to a company that enters the DTC as an authorized bulk purchaser of rough diamonds.
Until present moment Samuels Jewelers' majority shareholder has been DDJ Capital Management, LLC. Meanwhile, the shareholder keeps secret further details about the future transaction. It is worth mentioning that DDJ Capital Management, LLC functions as a boutique investment manager. Its specialization lies in debt financings, private equity, high yield and special situations investments.
The Samuels Jewelers' step towards the continuous partnership with a DTC sightholder has been dictated by the opportunities implied by the transaction for both sides. As for Samuels Jewelers, it is expected to come to the rapid growth due to ploughing back its balance sheet, as well as improving its inventory selection.
In its turn, the sightholder sees its own advantages in the future acquisition - Samuels will allow the sightholder gain new grounds in diamonds and jewelry products manufacture process. The partners intend to develop a new beneficial fully integrated business pattern - one group will manage the diamonds from rough diamonds to jewelry pieces offered to the consumer. This is a good way for Samuels Jewelers to offer additional value to the retail consumer.
At present time being the tenth largest specialty retailer of fine jewelry in America, Samuels Jewelers Inc. holds a chain of specialty retail jewelry stores in America, altogether comprising 97 retail jewelry stores opened in 18 states. The stores are involved in selling fine jewelry pieces available in a great variety of styles and offered at a wide price range. The most successful and developed are Samuels Jewelers' diamond and gemstone jewelry lines.
A major purchase transaction is being prepared in the diamonds' industry: '''''Samuels Jewelers''''' started a discussion with a sightholder from Diamond Trading Company (DTC). The latter is to acquire the majority part of retailer's shares.

There is still not much information about this particular sightholder, except for the fact that it is based in India. The present majority shareholder of Samuels Jewelers is '''''DDJ Capital Management'''''. The representatives of the company do not give any information concerning the potential buyer.

Randy McCullough, the President and CEO of Samuels Jewelers, stated that it would be a great opportunity for the retailer to start a partnership with a DTC sightholder, thus Samuels would be able to re-capitalize its balance sheet, to acquire newer inventory and guarantee itself stable growth in the future.

As for Samuels Jewelers, which is officially called ''"Samuels, Schubach and Samuels Diamonds"'', possesses a network of 97 jewelry stores in 18 US states since October 1 this year. The incomes of the retailer at the end of the previous year are estimated to be around $100,000,000.

The current shareholder of Samuels Jewelers, DDJ Capital Management, is a company, which specializes itself in private equity and debt financings. This managing firm began its activity in 1996 and since then has grown to operate capitals of 79 institutional clients (estimated in approximately 3 billion dollars).