Diamond jewelry retailer Signet Jewelers announced Tuesday (Oct. 12) it has agreed to acquire destination jeweler Diamonds Direct USA Inc., which serves primarily luxury-oriented bridal customers.
The deal calls for Signet to acquire Diamonds Direct for $490 million in an all-cash transaction that’s expected to close in the fourth quarter of fiscal 2022, subject to customary closing conditions and regulatory approval.
Signet will use the Diamonds Direct acquisition to improve its scale in purchasing, targeted marketing, connected commerce and jewelry services, according to the announcement.
“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 $9 billion revenue goal over time,” Signet CEO Virginia C. Drosos said in the announcement.
Diamonds Direct’s leadership team will remain intact when the deal is finalized, with Diamonds Direct President Itay Berger reporting to Drosos. In addition, Diamonds Direct executives will invest part of the money they’re getting in the acquisition in Signet shares.
“I am excited about Diamonds Direct joining the Signet family as we share a passion for company culture that prioritizes our team members, our customers and our community,” Berger said in the joint announcement.
“We are thrilled to continue to grow our business, leveraging Signet’s strengths and strategic capabilities to bring even more innovation and value to our signature shopping experience,” he said.
Signet now forecasts it will bring in $7.04 billion to $7.19 billion this year, up from its Sept. 2 projection range of $6.8 to $6.95 billion.
Related: Signet Acquires Rocksbox Designer Jewelry Subscription Startup
In April, Signet Jewelers acquired designer jewelry subscription platform Rocksbox for an undisclosed amount.
Rocksbox offers monthly subscriptions that let members rent and swap jewelry and designer trends. Pieces are reused and kept in service.
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