Signet Jewelers will acquire online retailer Blue Nile for $360 million in cash to boost Signet’s bridal, “accessible luxury” and digital businesses, while expanding its consumer base and the US retail chain.
Signet expects to complete the transaction in the third fiscal quarter, which runs until late October. “Blue Nile brings an attractive customer demographic that is younger, more affluent, and ethnically diverse, which will broaden our customer-acquisition funnel,” Signet said.
The announcement comes around two months after Blue Nile revealed plans for going public through a merger with a special purpose acquisition company (SPAC) called Mudrick Capital Acquisition Corporation II. The proposed deal valued Blue Nile at $873 million. The agreement was terminated on August 5 to enable the Signet deal, according to a form Mudruck filed with the US Securities and Exchange Commission (US SEC).
According to Signet, Blue Nile’s sales exceeded $500 million in 2021, with the intention to reach total annual revenues of $9 billion in the coming years.
“By joining Signet, we will extend our premium brand and fine-jewellery 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.
Signet meanwhile 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.”
16-08-2022
← Back