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By Olivia Oran
(Reuters) - Private equity firm JH Partners has sold its 40 percent stake in jeweller Alex and Ani, according to people familiar with the matter, who added the charm bracelet maker could be worth as much as $1 billion.
San Francisco-based JH Partners, which bought the stake in 2012, sold its holding to British buyout firm Lion Capital LLP, three people confirmed this week.
Alex and Ani founder and chief executive Carolyn Rafaelian, herself the daughter of a jewellery designer, will control the remaining 60 percent of the company.
The deal underscores the growth potential of lifestyle brands that establish a strong following among consumers.
Rhode Island-based Alex and Ani posted revenue of $350 million this year and earnings before interest, tax, depreciation and amortisation of around $80 million, said the people, who asked not to be identified because the matter is not public.
Alex and Ani and JH Partners could not immediately be reached, and Lion Capital declined to comment.
Launched 10 years ago and named after Rafaelian's two eldest daughters, Alex and Ani has 43 stores across the U.S and 184 kiosks at gift shops and department stores such as Bloomingdale's and Nordstrom Inc (N:JWN).
Its jewellery is made from environmentally sustainable materials, and the company claims its products are infused with "positive energy."
Former Chief Executive Officer Giovanni Feroce left abruptly earlier this year over a disagreement on how fast Alex and Ani should grow and has been replaced by Rafaelian in the interim.
The shares of Pandora A/S (CO:PNDORA), a Danish competitor of Alex and Ani, have soared 80 percent year-to-date, compared with a 26 percent rise in the OMX Copenhagen 20 Index (OMXC20). It trades at 13 times its 12-month projected EBITDA, according to Thomson Reuters data.
(Reporting by Olivia Oran in New York. Editing by Andre Grenon)