SIG.L Share News (SIG)

Signet Jewelers, the largest speciality retail jeweller in the US and the UK, has completed the 'transformational' acquisition of Zale Corp for $21 a share in cash.Signet, has purchased the North American firm through its wholly-owned subsidiary, Carat, to further diversify its businesses and extend its international footprint, which it believes will lead to further growth across the group. The deal has a total value of around $1.4bn, which it expects to finance through bank debt, other debt financing, as well as the securitisation of a "significant portion" of its accounts receivable portfolio. Signet's Chief Executive Officer, Mike Barnes, said: "The addition of Zale to the Signet family is consistent with our long-term growth strategy and leverages our combined operating expertise to create better choices for our customers, new opportunities for our employees, and makes us a more attractive partner to our vendors. "In addition, it allows us to better optimise our balance sheet, creating long-term value for our shareholders. We are excited about the prospects for the combined company and the many opportunities that this creates for our future." As of 11:21 the share price had dropped by 0.6p to 6442p.WS