Signet Jewelers has completed its acquisition of Diamonds Direct, the 22-store chain it announced it would buy in October.
Signet agreed to pay $490 million for the company, which reflects approximately a 1.1 multiple on annualized revenue and an approximately 7.1 multiple on annualized EBITDA (earnings before interest, taxes, depreciation, and amortization), it said. That indicates that Diamonds Direct’s annual revenue is approximately $446 million.
Diamonds Direct’s mature stores have a median annualized revenue of approximately $18.5 million over the last 12 months, a Signet statement said.
In a statement, Signet CEO Gina Drosos said, “This immediately accretive acquisition accelerates our growth strategy and gives our customers even more choice across our differentiated banners. 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 format,” Drosos continued. “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.”
Diamonds Direct, which then comprised only five stores, was purchased in 2015 by Blackstone Tactical Opportunities, a division of the Blackstone Group.
Post-acquisition, president Itay Berger will continue to head the company.
Drosos discussed the acquisition with JCK here and on JCK’s podcast The Jewelry District.
(Photo courtesy of Diamonds Direct)
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