Signet Jewelers Limited , the world’s largest retailer of diamond jewelry, today announced that it has finalized its acquisition of Diamonds Direct USA Inc. (“Diamonds Direct”) for $490 million1 in cash. This reflects approximately a 1.1x1 multiple on annualized revenue and approximately a 7.1x1 multiple on annualized EBITDA. Diamonds Direct currently operates 22 locations with mature stores having a median annualized revenue of approximately $18.5 million over the last twelve months2.
“Today we officially welcome Diamonds Direct to the Signet team. This immediately accretive acquisition accelerates our growth strategy and gives our customers even more choice across our differentiated banners,” said Signet CEO, Virginia C. Drosos. “Diamonds Direct strategically expands our market in accessible luxury and bridal, provides access to a new customer base and furthers our opportunity to build lifetime customer relationships. Just as we accelerated our digital transformation using learnings from our acquisition of fast-growing digital pure-play James Allen, we believe we can further drive modern consumer experiences learning from Diamonds Direct’s differentiated model as they have consistently and profitably grown revenues in highly productive store formats. Our intention is to grow Diamonds Direct while driving operating margin expansion over time through operating synergies in purchasing, targeted marketing, Connected Commerce and jewelry services.”
1Under the terms of the agreement, Signet paid a purchase price of $490 million in cash, subject to customary post-closing adjustments provided in the agreement. Multiples are calculated based on Diamonds Direct’s annual expected calendar 2021 performance, on a pre-acquisition basis. |
2Mature stores are stores opened in 2018 or earlier. Signet plans to report Diamonds Direct results within the Company’s North America segment and does not intend to provide this level of detail for the banner going forward. |
About Signet and Safe Harbor Statement
Signet Jewelers Limited is the world’s largest retailer of diamond jewelry. As a purpose-driven and sustainability-focused company, Signet is a participant in the United Nations Global Compact and adheres to its principles-based approach to responsible business. Signet is a Great Place to Work –Certified™ company and has been named to the Bloomberg Gender-Equality Index for three consecutive years. Signet operates approximately 2,800 stores primarily under the name brands of Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples, Piercing Pagoda, JamesAllen.com, Diamonds Direct and the jewelry subscription service, Rocksbox. Further information on Signet is available at www.signetjewelers.com. See also www.kay.com, www.zales.com, www.jared.com, www.hsamuel.co.uk, www.ernestjones.co.uk, www.peoplesjewellers.com, www.banter.com, www.pagoda.com, www.rocksbox.com, www.jamesallen.com and www.diamondsdirect.com.
Investors:
Vinnie Sinisi
SVP Investor Relations & Treasury
+1-330-665-6530
vincent.sinisi@signetjewelers.com
Media:
Colleen Rooney
Chief Communications & ESG Officer
+1 330 668 5932