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The largest specialty retail jeweler in the US and the UK, Signet Jewelers, and Zale Corp., another fine jewelry retailer in North America, have entered into an agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21 per share in cash consideration. This transaction brings together two of today’s leading jewelry retailers. Zale Corp. has 1,680 retail locations in the US, Canada and Puerto Rico. Its brands include Zales Jewelers, Zales Outlet, Gordon’s Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Forbes has reported that the deal is estimated to have an enterprise value of $1.4 billion. It has also been reported that this merger will create a $6.2 billion firm.
Mike Barnes, Signet’s Chief Executive Officer, stated that “This transformational acquisition further diversifies our businesses and extends our international footprint, opening the door to greater growth and innovation across the enterprise.” Zale CEO, Theo Killion, reported that “Having successfully completed our multi-year turnaround program to return to profitability, Signet’s operating strengths will enable us to accelerate Zale’s performance improvement for the benefit of our current and future guests,” according to Market Watch.
The purchase marks the biggest acquisition yet for Signet, reported Bloomberg News, which also shared that investor’s, applauded the deal and Signet’s stock up is 17 percent to $92.79. The transaction is subject to Zale stockholder approval, certain regulatory approvals as well as customary closing conditions.
For information on employment opportunities with Signet, readers can click here.
Image Credit: www.usatoday.com
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