The pioneering online disruptor of the diamond jewellery market is returning to the public arena through an agreement with a special purpose acquisition company.
Blue Nile and Mudrick Capital Acquisition Corporation II have agreed to combine in an agreement that will result in Blue Nile becoming a public company. Following the closing of the deal, the combined company will be named Blue Nile and be led by Blue Nile CEO Sean Kell and the current management team. It is expected to be listed on NASDAQ.
Founded online in 1999, Blue Nile was acquired in 2017 by an investor group comprised of Bain Capital Private Equity, Bow Street and Adama Partners in a deal that took the company private. The company’s assortment has grown from conflict-free diamonds to include earrings, necklaces, pendants, bracelets and other fashion items.
Blue Nile ships to 44 countries and is also expanding in the physical space. The company operates about 20 showrooms in the US, with plans to have 40 locations by the end of 2023. The stores operate on an “asset light” model, with display inventory and a shopping experience in which consumers select their jewellery, with the help of company associates, and then order the items through the company’s website for delivery to home or office.
“Over the past two and a half years we have successfully transformed and elevated Blue Nile as a thriving fine jewellery and lifestyle brand, and we are excited about the growth opportunities that lie ahead,” Kell said. “We have only scratched the surface of an estimated $320bn global fine jewellery market that has been slow to move online and remains fragmented. As we look to execute our growth strategy, now is the right time to become a public company.”
