US-based diamond jewellery retailer Signet Jewelers has entered an agreement to acquire online jewellery retailer Blue Nile for $360m in an all-cash transaction.
Blue Nile is an online retailer of GIA-graded diamonds and fine jewellery, offering engagement rings, wedding rings and other items of jewellery.
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The company also provides expert guidance, in-depth educational materials and customer-centric online tools for jewellery shopping.
Blue Nile distributes products at 21 physical showrooms across the US, as well as its website.
The company recorded more than $500m in revenue for the fiscal year 2021 (FY21).
Signet CEO Virginia Drosos said: “Blue Nile is a pioneer and innovator in online engagement rings and fine jewellery, providing a unique and highly desirable shopping experience for customers.
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By GlobalData“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.”
The acquisition is intended to expedite Signet’s efforts to expand its bridal offerings and scale its Accessible Luxury portfolio while maintaining its position in the jewellery category.
Once completed, Blue Nile will join Jared, James Allen and Diamonds Direct at the top tier of Signet’s Accessible Luxury banners.
The deal is subject to customary closing conditions and is currently expected to close in the third quarter of the fiscal year 2023 (FY23).
In a separate development, Signet has updated its guidance for the second quarter of FY23, as well as the full year.
The company revised its forecast in response to growing pressure on consumers’ discretionary spending and increased macroeconomic headwinds.
It now expects its total revenue for Q2 to be around $1.75bn and its full-year total revenues to be between $7.6bn and $7.7bn.
