In a move that is sure to shake up the diamond industry, Blackstone has acquired the International Gemological Institute (IGI) for $569.65 million. The deal, which was announced on May 21, 2023, marks the first time that a major diamond grading lab has been acquired by a private equity firm.
IGI is one of the world’s leading diamond grading labs, with a global network of 29 laboratories and 18 schools of gemology. The company was founded in 1975 in Antwerp, Belgium, and has certified over 100 million diamonds.
Blackstone is a global investment firm with over $600 billion in assets under management. The company has a history of investing in and growing businesses in the diamond industry, including De Beers Group and Harry Winston.
The sale of IGI to Blackstone is seen as a sign of the growing consolidation in the diamond industry. In recent years, there have been a number of mergers and acquisitions in the sector, as companies seek to gain market share and scale.
What does this mean for the diamond industry?
The sale of IGI to Blackstone is a significant development for the diamond industry. It is the first time that a major diamond grading lab has been acquired by a private equity firm, and it is likely to have a number of implications for the sector.
One of the most immediate impacts of the sale is likely to be increased competition in the diamond grading market. Blackstone is a well-funded and experienced investment firm, and it is likely to use its resources to expand IGI’s operations and market share. This could put pressure on other diamond grading labs, which will need to find ways to compete.
In addition, the sale of IGI to Blackstone could lead to new opportunities for growth in the diamond industry. Blackstone has a track record of investing in and growing businesses, and it is likely to use its expertise to help IGI expand into new markets and develop new products. This could boost demand for diamonds and help to grow the overall diamond industry.
Overall, the sale of IGI to Blackstone is a significant development for the diamond industry. It is likely to lead to increased competition and new opportunities for growth.
