Sun Capital buys growing gem and jewelry shopping network

  • To keep current management
  • Entrepreneur-owned retailer acquired in auction
  • Company grew revenue by 45 percent since 2010

While Sun Capital often buys troubled companies such as bathroom fixture manufacturer American Standard, it also helps other targets in healthier shape grow more quickly. Sun Capital’s exit of Timothy’s Coffees of the World to Green Mountain Coffee Roasters fits the latter template, as well as its Mattress Firm investment.

Jeremy Stone, a principal at Sun Capital, said Duluth, Ga.-based Gem Shopping Network is now available to more than 40 million U.S. households, but it could increase its reach to a 100 million.

Founded by Frank M. Circelli in 1995, the company offers jewelry and gem stones at price points that often exceed $1,000 or $2,000, more expensive than many of the mass-market offerings by other electronic retailers such as Home Shopping Network.

Sun Capital, which bought Gem Shopping Network in an auction managed by Livingstone Partners in Chicago, plans to keep the  company’s management team, led by CEO PJ Lynch, who joined in 2011.

After increasing sales by about 45 percent over the past three years, Gem Shopping Network is expected to benefit from a projected annual growth rate of about 6.6 percent over the next three years in the U.S. home shopping retail industry.

Sun Capital’s retail portfolio already includes Shopko, The Limited, Hanna Andersson, Vince and Scotch & Soda.