Signet Jewelers Ltd. is looking to attract younger consumers with its purchase of a direct-to-consumer, bridal-focused jewellery retailer.
The parent company of Key Jewelers, Zales, Jared and other banners has entered into an agreement to acquire Diamonds Direct USA Inc. for $490M. The all-cash acquisition is expected to close in the fourth quarter.
Based in Charlotte, North Carolina, Diamonds Direct operates 22 stores in addition to an e-commerce site. After the transaction is completed, Diamond Direct’s leadership team will remain in place, with President Itay Berger reporting to Signet CEO Virginia Drosos.
“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 $9bn revenue goal over time,” said Drosos. “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.”