Signet Jewelers Ltd. plans to acquire Diamonds Direct USA Inc. for $490 million, the companies announced Tuesday.
Signet (NYSE: SIG) stated in a press release: “Diamonds Direct’s strong value proposition, extensive bridal offering and customer-centric, high-touch shopping experience is a destination for younger, luxury-oriented bridal shoppers. Signet plans to drive operating synergies by leveraging scale in purchasing, targeted marketing, Connected Commerce and jewelry services.”
Signet CEO Virginia C. Drosos said: “The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time. The Signet team continues to deliver strong business performance as part of our Inspiring Brilliance growth strategy. We are executing on our strategic priorities and investing in our business, while also returning cash to shareholders through our previously announced reinstated dividend and share buy-back program.”
Diamonds Direct President Itay Berger added: “I am excited about Diamonds Direct joining the Signet family as we share a passion for company culture that prioritizes our team members, our customers and our community. We are thrilled to continue to grow our business, leveraging Signet’s strengths and strategic capabilities to bring even more innovation and value to our signature shopping experience.”
Signet plans to acquire Diamonds Direct for $490 million in an all-cash transaction expected to close in the fourth quarter of fiscal 2022, subject to customary closing conditions and regulatory approval. Following the acquisition, Diamonds Direct’s current leadership team will remain intact with Berger reporting to Drosos.
As a “sign of commitment to the long-term vision of Signet and Diamonds Direct,” Berger and other key Diamonds Direct executives have agreed, subject to the completion of the transaction, to invest a portion of their transaction proceeds in Signet shares.