Signet Jewelers to Acquire Blue Nile for $360M
Signet Jewelers, parent company of Zales, Jared, Kay Jewelers, among other jewelry brands, said Tuesday that it will acquire online jewelry retailer Blue Nile for $360 million in an all-cash deal. The move will help Signet to appeal to younger consumers and grow its bridal business. Signet said the deal, which will be funded with cash on hand, is expected to close in the fiscal third quarter. It said the transaction will likely not be accretive to the business, however, until the fourth quarter of fiscal 2024.
Total Retail's Take: This acquisition by Signet will aid its digital growth efforts, bringing into the fold Blue Nile's younger, more affluent, and ethnically diverse customer demographic. A wider customer acquisition funnel will potentially offset some of the challenges that are confronting Signet in the macroeconomic landscape, most notably rising inflation and a pull back on consumer spending.
""Adding Blue Nile to our strong and diversified portfolio of banners will further drive our Inspiring Brilliance growth strategy — expanding customer choice, building new capabilities, and achieving meaningful operating synergies that will increase value for both our consumers and shareholders," Signet CEO Virginia C. Drosos said in a company press release announcing the transaction.