Signet Jewelers is making an acquisition to boost its online offerings and appeal to younger customers.
The parent company of Zales, Kay Jewelers, Jared and other brands will acquire online jewellery retailer Blue Nile for $360M in an all-cash deal. Founded online in 1999, Blue Nile ships to 44 countries and is also expanding in the physical space, with about 20 showrooms in the US. The company’s assortment has grown from conflict-free diamonds to include earrings, necklaces, pendants, bracelets and other fashion items.
The acquisition will accelerate Signet’s efforts to expand its bridal offerings and grow its “accessible luxury” portfolio while extending its digital capabilities. It will also bring a younger, more affluent and ethnically diverse customer base into Signet’s stable.
“Blue Nile is a pioneer and innovator in online engagement rings and fine jewellery, providing a unique and highly desirable shopping experience for customers,” said Signet CEO Virginia C. Drosos. “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.”
