Fenix Diamonds and Dholakia Lab-Grown Diamond have jointly acquired Israeli diamond grower Lusix for $4 million.
Founded in 2016 by Benny Landa, Lusix has received over $152 million in investment since its establishment, focusing on advanced technologies in lab-grown diamonds. The acquisition aims to expand production capacity and advance research and development (R&D) for both companies.
Expanding Production and Preserving Innovation
The acquisition underscores the shared goal of Fenix and Dholakia to enhance production capacity and strengthen research and development (R&D) capabilities. Both companies offered similar terms during the bidding process and chose to divide Lusix’s production under confidential conditions. A key factor in the approval of their bid was the commitment to retaining Lusix’s workforce. Thirteen employees will remain employed for at least a year, while an additional ten will be retained for a minimum of six months.
The agreement maintains Lusix’s research efforts and growth objectives while providing stability for its operations and workforce.
Naman Parikh, Managing Director of Fenix Diamonds, highlighted the technological opportunities presented by the acquisition:
“Fenix Diamonds is committed to delivering affordable, ethical, and sustainable lab grown diamonds to a global customer base. The technological advancements that the Lusix acquisition brings aligns with our vision of remaining at the forefront of innovation. We want to offer our customers greater value through larger diamonds in a cost-effective manner”.
Hasu Dholakia, founder of Dholakia Lab-Grown Diamond, also emphasised the strategic importance of the acquisition:
“The lab-grown diamond market is expected to grow to $29 billion by 2028. Adding Lusix to our portfolio will help us expand production capacity and push the boundaries of innovation within our field, providing the foundation for new products and technologies”.
Implications for the Lab-Grown Diamond Industry
The acquisition enables Fenix and Dholakia to respond to the growing demand for lab-grown diamonds, which a Bain & Co. report projects will reach $29 billion by 2028. Both companies plan to leverage Lusix’s capabilities to enhance the use of renewable energy resources and develop groundbreaking production technologies.
With Lusix’s expertise and infrastructure, Fenix and Dholakia aim to advance the lab-grown diamond sector, focusing on innovation and sustainability initiatives.
