The company behind the Goldsmiths, Mappin & Webb and Watches of Switzerland jewellery stores is up for sale for about £200m, after defying the gloom to record its best year yet.
Aurum has hired Cavendish Corporate Finance to handle a sale of the 165-store business. A deal would mean a handsome return for chairman Don McCarthy, who owns 25%, and windfalls for the management, led by Justin Stead, chief executive.
Aurum Holdings is controlled by the resolution committee of Landsbanki, the failed Icelandic bank. It acquired its stake after the 2009 collapse of Baugur, the group to which it had been a key lender. Rather than rushing to sell its retail portfolio, the committee held on so the chains could increase profits, boosting their value.
Aurum’s earnings before interest, tax and accounting charges rose 54% to £18m in the year to January 2011, and the group continues to trade well.
Paul Herman of Cavendish said Aurum is “attracting significant overseas interest”, including from Arab sovereign wealth funds.