Dive Brief:
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In a deal originally reported at $690 million, Signet Jewelers Ltd. agreed to acquire Zale Corp. for a total value of $1.4 billion, including debts, making it the largest jewelry chain in the U.S.
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Signet Jewelers’ presence in the jewelry market will almost double with the acquisition of more than 1,600 Zale retail locations, including brands such as Zale’s and Peoples.
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The deal comes after an effort from Signet Jewelers to buy Zale in 2006.
Dive Insight:
The U.S. jewelry industry reported increased sales at the end of last year, which comes as welcome news after multiple seasons of bleak figures. Signet’s acquisition should improve the company’s contact with midrange jewelry customers, allowing it to capitalize on the industry’s growth in multiple markets.
