LONDON (Alliance News) - Signet Jewelers Ltd Wednesday said it will buy US-based specialty fine jewellery retailer Zale Corp for USD21.00 a share in cash, valuing the company at about USD1.4 billion, a major deal that will significantly boost its revenues and profits.
The specialty jewellery retailer, which has operations in the US as well as H.Samuel and Ernest Jones in the UK, said the acquisition will result in combined sales of USD6.2 billion.
It expects to generate around USD100 million in annual synergies within three fiscal years, and expects it to boost earnings in the first full year after the deal completes by a high single-digit percentage.
"This transformational acquisition further diversifies our businesses and extends our international footprint, opening the door to greater growth and innovation across the enterprise," said Chief Executive Officer Mike Barnes in a statement.
The group said the transaction is subject to Zale stockholder approval, certain regulatory approvals and customary closing conditions.
Shares in the jewellery retailer were up 8.9% in London Wednesday afternoon, at 5,190.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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