Signet Jewelers Limited (NYSE: SIG), the world's leading retailer of diamond jewelry, has signed a definitive agreement to acquire Blue Nile, Inc., a leading online retailer of engagement rings and fine jewelry, for $360 million in an all cash transaction. Blue Nile delivered revenue of more than $500 million in calendar year 2021.
The strategic acquisition of Blue Nile accelerates Signet's efforts to expand its bridal offerings and grow its Accessible Luxury portfolio while extending its digital leadership in the jewelry category – all to further enhance shopping experiences for consumers and create value for shareholders. Blue Nile brings an attractive customer demographic that is younger, more affluent, and ethnically diverse which will broaden our customer acquisition funnel. Upon closing, Blue Nile will be strategically positioned at the top tier of Signet's Accessible Luxury banners along with Jared, James Allen and Diamonds Direct.
"Blue Nile is a pioneer and innovator in online engagement rings and fine jewelry, providing a unique and highly desirable shopping experience for customers," said Signet Chief Executive Officer 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."
"By joining Signet, we will extend our premium brand and fine jewelry offering to millions of new customers while bringing new capabilities to our leading e-commerce business that will drive additional growth opportunities for Blue Nile," said Sean Kell, CEO of Blue Nile. "We're equally thrilled to join a purpose-inspired and sustainability-focused company that shares our core values and has been recognized as a certified Great Place to Work®."
The transaction will be funded with cash on hand and is currently expected to close in the third quarter of Fiscal Year 2023. Regulatory filings were made in July and the applicable waiting period has passed however the transaction is still subject to other customary closing conditions. While synergies are likely to start materializing as early as the fourth quarter of Fiscal 2023, the acquisition, will likely not be accretive until Q4 of Fiscal 2024, exclusive of transaction and integration-related charges, as well as anticipated impacts of purchase accounting adjustments related to the transaction.
