Signet buys American jewellery chain Zale in deal worth $1.4bn
SIGNET, the jewellery company behind H.Samuel and Ernest Jones, has strengthened its foothold in the US after snapping up smaller rival Zale for $690m (£414m).
Signet said yesterday it has agreed to pay $21.00 per share in cash, a 41 per cent premium to Zale’s closing price on Tuesday.
The deal, including Zale’s debt of around $500m, values the jewellery chain at about $1.4bn.
The deal also marks one of Signet’s biggest acquisitions to date and will give its brand Kay and Zales a combined market share in the US of around 16 per cent.
This transformational acquisition further diversifies our businesses and extends our international footprint, Signet’s chief executive Mike Barnes said.
Zale faced a liquidity crisis in 2010 after sales plummeted but has rebounded since then. In July, it reported its first profitable year since the 2008 financial crisis and has recently posted strong sales.