American online jeweller Blue Nile announced on 7 November 2016 that it has entered into a definitive agreement to be acquired by an investor group comprised of funds managed by Bain Capital Private Equity and Bow Street LLC.
According to Blue Nile’s press release, the terms of the all-cash deal will provide substantial value to its stockholders. All outstanding shares of Blue Nile common stock will be acquired for approximately US$500 million. Stockholders will receive US$40.75 in cash per share, representing a premium of about 34 percent over Blue Nile’s closing price on 4 November 2016.
Blue Nile's Board of Directors unanimously approved the deal and recommended that stockholders vote their shares in favour of the transaction. Blue Nile will become a privately-held company and continue to be headquartered in Seattle, WA. Closing of the deal is subject to customary closing conditions, including the approval of Blue Nile's stockholders and required regulatory approvals. There are no financing conditions associated with the proposed acquisition.
"Since its inception, Blue Nile's guiding principle has been to provide value to its customers, suppliers, and shareholders, and this transaction provides tremendous value to all," said Blue Nile chairman, CEO and president Harvey Kanter.
"This is an opportunity to acquire a true disruptor in a fundamentally attractive and growing segment of the diamond industry," said Ryan Cotton, a Managing Director at Bain Capital Private Equity. "Blue Nile provides a clearly superior consumer value proposition and offers a convenient delivery model that enables choice and selection in a no-pressure environment. We believe the company will continue to grow as educated consumers continue to seek easy and convenient shopping experiences that deliver transparent pricing and enhanced value."
"Blue Nile is a unique business with a strong platform in an industry that is rapidly evolving and migrating online," said Howard Shainker, Managing Partner at Bow Street. "We are excited to work alongside Blue Nile management and BainCapital to execute on the company's strategy."
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