Blue Nile Goes Private In $500 Million Sale To Bain, Bow Street

Blue Nile, the online jewelry eStore, announced Monday (Nov. 7) it is going private via a deal in which it will be acquired by an investor group made up of Bain Capital Private Equity and Bow Street.

In a press release, Blue Nile said, in the all-cash deal, the investor group will buy all of Blue Nile’s outstanding shares for around $500 million. Shareholders will get $40.75 a share in cash, which represents a 34 percent premium over the closing price of Blue Nile’s stock on Nov. 4.

“Since its inception, Blue Nile’s guiding principle has been to provide value to its customers, suppliers and shareholders, and this transaction provides tremendous value to all,” said Blue Nile Chairman, CEO and President Harvey Kanter in the press release announcing the transaction. “Blue Nile will continue its innovative drive that has disrupted the diamond industry and made us the smartest, easiest and most pressure-free way for consumers to buy a diamond.”

According to the company, the entire board has signed off on the deal and recommends Blue Nile shareholders also vote their shares in favor of the transaction. Once it is complete, Blue Nile will be a private company. The deal is expected to close in the first quarter of next year. Blue Nile can entertain other offers during a 30-day go-shop period.

The move comes just months after Blue Nile announced it was expanding its physical store presence, announcing the opening of its second brick-and-mortar store at The Westchester mall in White Plains, New York, this past spring. The opening of the new store speaks to the brand’s ambition to blur the line between online and offline commerce, which is something that today’s tech-savvy shoppers increasingly tend to seek out in their omnichannel shopping experience. The opening of the new store comes after the Seattle-based eStore opened its first physical store at the Roosevelt Field mall in Garden City, New York, in June last year.