Signet Buys Blue Nile for $360M

 

              A Blue Nile showroom in Oregon

Signet Jewelers has signed a deal to acquire online retailer Blue Nile for $360 million in cash.

The purchase will boost Signet’s bridal, “accessible luxury” and digital businesses, while expanding the group’s consumer base, the US retail chain said Tuesday. The company expects to complete the transaction in the third fiscal quarter, which runs until late October. Either side can pull out if the deal hasn’t closed by November 3, 2022.

“Blue Nile brings an attractive customer demographic that is younger, more affluent, and ethnically diverse, which will broaden our customer-acquisition funnel,” Signet added.

The announcement comes around two months after Blue Nile revealed plans for a stock-market flotation via a merger with Mudrick Capital Acquisition Corporation II, a special-purpose acquisition company (SPAC). The proposed deal valued Blue Nile at $873 million. Mudrick was not immediately available for comment on how that transaction progressed. The current owners are Bain Capital Private Equity and Bow Street, which acquired the e-commerce jeweler for around $500 million in 2017.

Blue Nile’s sales exceeded $500 million in 2021, according to Signet, which has stated its intention to reach total annual revenues of $9 billion in the coming years. Last October, it agreed to acquire Diamonds Direct USA for $490 million; in 2017, it bought diamond retail website James Allen for $328 million.

“By joining Signet, we will extend our premium brand and fine-jewelry offering to millions of new customers while bringing new capabilities to our leading e-commerce business that will drive additional growth opportunities for Blue Nile,” said Blue Nile CEO Sean Kell.

Meanwhile, Signet has reduced its sales guidance for the second quarter, which ended in late July, estimating revenue of $1.75 billion compared with an earlier forecast of $1.79 billion to $1.82 billion. Management cited “heightened pressure on consumers’ discretionary spending and increased macroeconomic headwinds.”

“We saw sales soften in July as our customers have been increasingly impacted by rapid inflation, so we’re revising guidance to align with these trends,” said Signet CEO Gina Drosos. The new outlook for the quarter still translates to a sales increase of around 25% compared with the equivalent period of 2019, before the Covid-19 pandemic, the executive noted.

Source: DCLA

Diamonds Direct to be acquired by retail giant Signet Jewelers for $490M

      Signet Jewelers agreed to buy Diamonds Direct

The world’s largest retailer of diamond jewelry plans to acquire Charlotte-based Diamonds Direct in a $490 million deal.

Signet Jewelers Ltd. (NYSE: SIG) said today that it has entered into an agreement to buy the local jewelry chain in an all-cash transaction. It would add to the Bermuda company’s portfolio of jewelry brands that already consists of Kay Jewelers, Zales, Jared, H. Samuel and Ernest Jones, among others. Signet operates about 2,800 stores altogether.

“The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time,” Signet CEO Virginia C. Drosos said in a press release.

Shares in the company were trading at $80.88 at 2:30 p.m. today, down about 1.4% from $82.05 at yesterday’s close.

Diamonds Direct is currently owned by private-equity firm Blackstone Group (NYSE: BX), which purchased the company in 2015 for an undisclosed amount.

Diamonds Direct was founded in 1995 in Charlotte. It now has 22 locations in 13 states, as well as an online presence. That includes its flagship store in SouthPark, at 4521 Sharon Road.

The Diamonds Direct leadership team, storefronts and branded offerings will remain in place following the acquisition, according to a company spokeswoman.

“Signet will retain the Diamonds Direct brand and our unique value proposition as a separate banner, and plans to position Diamonds Direct as a new and differentiated luxury offering among the Signet portfolio,” Kelsey Halford Diachenko said in an emailed statement to CBJ.

She added that Diamonds Direct is “really excited about the opportunities” it will have with Signet once the deal closes.

Itay Berger, current president of Diamonds Direct, will report directly to Drosos.

The jeweler has a buying office inside the world diamond exchange in Israel. That allows it to source directly from mines and diamond cutters around the globe, and handpick merchandise.

It offers loose and mounted diamonds, bridal jewelry, diamond and gemstone fashion jewelry, and designer jewelry from America’s top brands.

“As a result of this transaction, everything our customers know and love about Diamonds Direct will just be getting bigger and better,” Diachenko said. “While Signet will infuse their resources into our business to fuel our growth, the heart of who we are, how we operate and what we believe in will not change.”

The deal is expected to be completed in Signet’s fourth quarter of fiscal 2022, putting the anticipated closing date sometime between November and the first of February.

Source: DCLA

Diamonds Direct to be acquired by retail giant Signet Jewelers for $490M

      Signet Jewelers agreed to buy Diamonds Direct

The world’s largest retailer of diamond jewelry plans to acquire Charlotte-based Diamonds Direct in a $490 million deal.

Signet Jewelers Ltd. (NYSE: SIG) said today that it has entered into an agreement to buy the local jewelry chain in an all-cash transaction. It would add to the Bermuda company’s portfolio of jewelry brands that already consists of Kay Jewelers, Zales, Jared, H. Samuel and Ernest Jones, among others. Signet operates about 2,800 stores altogether.

“The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time,” Signet CEO Virginia C. Drosos said in a press release.

Shares in the company were trading at $80.88 at 2:30 p.m. today, down about 1.4% from $82.05 at yesterday’s close.

Diamonds Direct is currently owned by private-equity firm Blackstone Group (NYSE: BX), which purchased the company in 2015 for an undisclosed amount.

Diamonds Direct was founded in 1995 in Charlotte. It now has 22 locations in 13 states, as well as an online presence. That includes its flagship store in SouthPark, at 4521 Sharon Road.

The Diamonds Direct leadership team, storefronts and branded offerings will remain in place following the acquisition, according to a company spokeswoman.

“Signet will retain the Diamonds Direct brand and our unique value proposition as a separate banner, and plans to position Diamonds Direct as a new and differentiated luxury offering among the Signet portfolio,” Kelsey Halford Diachenko said in an emailed statement to CBJ.

She added that Diamonds Direct is “really excited about the opportunities” it will have with Signet once the deal closes.

Itay Berger, current president of Diamonds Direct, will report directly to Drosos.

The jeweler has a buying office inside the world diamond exchange in Israel. That allows it to source directly from mines and diamond cutters around the globe, and handpick merchandise.

It offers loose and mounted diamonds, bridal jewelry, diamond and gemstone fashion jewelry, and designer jewelry from America’s top brands.

“As a result of this transaction, everything our customers know and love about Diamonds Direct will just be getting bigger and better,” Diachenko said. “While Signet will infuse their resources into our business to fuel our growth, the heart of who we are, how we operate and what we believe in will not change.”

The deal is expected to be completed in Signet’s fourth quarter of fiscal 2022, putting the anticipated closing date sometime between November and the first of February.

Source: DCLA