Ernest Jones

Specialty jewelry retailer Signet Jewelers said on Wednesday that it would acquire its smaller rival Zale Corporation in a deal that significantly expands its business in the United States. Signet, which is based in Bermuda, operates more than 1,400 stores in the United States under the Kay Jewelers and Jared the Galleria of Jewelry brand names. It also operates about 500 stores in Britain under the brands H.Samuel and Ernest Jones. As part of the deal, Signet has agreed to pay $21 a share in cash for Zale's outstanding shares, or about $690 million.