China's Fosun Buys 80% of IGI

RAPAPORT... Chinese corporate giant Fosun has agreed to buy an 80%stake in the International Gemological Institute (IGI), the grading laboratorysaid Wednesday. "The interest of this large conglomerate to invest in IGIshows the confidence it has in our industry," said Roland Lorie, IGI's CEO. "Asdemand for certification increases, the investment...will significantlyaccelerate our core business, offering?EUR?and presenting many new opportunitiesall over the globe." Fosun will implement the acquisition through Yuyuan, itsholding company for the consumer sector, IGI explained. The Lorie family willretain a 20% interest, with Roland Lorie still managing the company. MarcBrauner, who was previously Lorie's co-CEO, has left IGI after 30 years withthe group. The parties did not release any further financial details. Antwerp-based IGI, founded in 1975, operates 23laboratories and schools around the world. Fosun is one of China's largestcorporations, spanning the financial, health-care, pharmaceuticals, consumer,real-estate, mining and energy industries, with Club Med and Cirque duSoleil among the brands it owns. It bid to acquire Gemfields last year,but lost out to Pallinghurst Resources. "IGI has built great fundamentals and human capital overthe years, with highly respected expertise and input from both the Lorieand Brauner families," said Xu Xiaoliang, executivedirector and copresident of Fosun and chairman of Yuyuan. "We believe IGIis well positioned to bring its gemological knowledge and expertise to emergingmarkets, including China."Image: An IGI laboratory. Credit: IGI