Peoples Jewellers owner bought for US$1.4B in deal that could bring Kay Jewellers to Canada

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Peoples Jewellers owner bought for US$1.4B in deal that could bring Kay Jewellers to Canada Two of the U.S.' biggest diamond sellers — including the owner of Canada’s Peoples Jewellers and Mappins — have agreed to a multi-million dollar marriage of convenience

Article content Two of the U.S.’ biggest diamond sellers — including the owner of Canada’s Peoples Jewellers and Mappins — have agreed to a multi-million dollar marriage of convenience.

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Article content Signet Jewelers Ltd.’s acquisition of Zale Corporation, a deal valued at US$1.4-billion including debt, is the latest sign of industry consolidation as chains and mom-and-pop shops increasingly battle online upstarts for customers. We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Peoples Jewellers owner bought for US$1.4B in deal that could bring Kay Jewellers to Canada Back to video The top two U.S. mid-priced jewellers announced Wednesday they have entered into an agreement in which Signet will acquire all of its smaller rival’s issued and outstanding stock at US$21 in cash per share, a 41% premium over the closing price on the New York Stock Exchange a day earlier. With this acquisition Signet, the largest specialty retailer in the U.S. and the U.K., boosts its store locations from 1,900 to 3,600 and becomes the leading trinket retailer in Canada, said Mike Barnes, the chief executive and director of Signet Jewelers.

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Article content “We are not only number one in the U.S. and the U.K.; this acquisition will also make our newly combined company number one in Canada as well and it will allow us to continue building a platform for potential future geographic expansion,” he said during a conference call Wednesday. Investors seemed to like the pairing as Zale stock rose more than 40% to close at $20.92 on the New York Stock Exchange — impressive given that it hovered as low as $3.80 last March. Signet’s stock rose 18% Wednesday. The combined company will generate approximately US$6-billion in sales and more than $700-million in EBITDA, and will have nearly 30,000 associates, Mr. Barnes said. With Signet’s jewellery brands Kay and Jared, which are leaders in the mid-priced and the upper-mid-priced segments, the addition of Zale’s equally mall-friendly brands “will help us maximize our midmarket success,” he said.

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Article content The new company is also expected to see $100-million in synergies by the third year of operation, in large part due to stronger buying power and cost improvements, Signet executives said on the conference call. The Zale brand will operate as a separate standalone division within Signet, led by Zale’s chief executive Theo Killion. This acquisition, subject to shareholder approval, would cap what has been a tumultuous run over the years for Zale, and Peoples Jewellery. Peoples was founded in Toronto 1919 by the Gerstein family, which grew the business over the following decades into a chain of jewellery stores with as many as 280 locations by the 1980s. In 1986, Peoples teamed up with Switzerland’s Swarovski International to swing the junk-bond financed US$650-million purchase of Zale, which at the time was a firm more than five times its size. In 1989, the company later bought Gordon Jewelry Corp for US$311-million.

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Article content But after recession hit in the early 1990s, combined with high interest payments, Zale was pushed to the brink, filing for bankruptcy in 1992. In 1993, Peoples followed it down. In an odd twist, by 1999, a stronger, financially-healthier Zale bought Peoples Jewellery for US$115-million. Many years later, consolidation in the jewellery industry at all price points continues, said David Wu, luxury goods analyst at Telsey Advisory Group in New York. Hamilton, Bermuda-based Signet had previously discussed buying Zale but those talks ended in 2006 after Zale’s board decided to stay independent, according to Bloomberg. After Zale saw slumping sales in recent years, it embarked on a multi-year restructuring which is “starting to bear fruit”, said Mr. Wu, drawing a suitor.

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Article content Zale Corp.’s holiday sales results showed overall comparable store sales up 2%, with Zales’ branded stores up 4.4% and Peoples performing strongly at 2%. Mappins, however, saw sales drop more than 6%. In both Canada and the U.S., this sector of retail remains fragmented with independent retailers and mom-and-pop stores competing with the jewellery giants, but consolidation is increasing as chains look to benefit from economies of scale. “Consolidation has been happening, but at a very slow pace,” Mr. Wu. said. “This acquisition does speed up the pace.” The U.S. jewellery industry is also consolidating as stores face online challengers such as Blue Nile Inc., Ken Gassman, president of the Jewelry Industry Research Institute, told Bloomberg. Mr. Wu said the deal potentially allows to roll out its brands north of the border and providing Zale with access to “best in class” management. “It really gives Signet an entry way into the Canadian market,” he said. “I wouldn’t be surprised if Signet uses some of the real estate it currently has in Canada and potentially convert some of the underperforming Mappins stores into potentially a Kay store or a Jared store…. which I think would be very well-received.” With files from Bloomberg

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Hong Kong politician Regina Ip puts diamond Rolex up as part of HK$1 million vaccination lottery for members, ‘friends’ of her party

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New People’s Party chairwoman Regina Ip poses with a Rolex to be offered up in a lottery for vaccinated party allies. Photo: Sam Tsang

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‘Bachelor’ alum Haley Ferguson is engaged. Images via Instagram/hfergie11.

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It’s been a busy week in Bachelor Nation, with several of the hit series’ stars publicly announcing their recent engagements.

Following in the footsteps of former “Bachelorette” Kaitlyn Bristowe, who announced her engagement to entrepreneur Jason Tartick on May 12, “Bachelor” alum Haley Ferguson took to Instagram on Sunday to share some happy news with her 374,000 followers.

“I am ENGAGED to the man of my DREAMS,” Ferguson wrote. “Thank you for choosing me. Will I ever stop crying/smiling…probably not!”

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Ferguson’s oval stunner with a pave band was a custom design created by her fiancé, professional hockey player Oula Palve. Working with the team at Orange County’s Happy Jewelers, Palve helped design the ring of Ferguson’s dreams.

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“I couldn’t believe how massive it was!” Ferguson shared with E! News. “I sent him a picture of the shape that I loved and let him do the rest! Oula also had the band engraved on the inside with ‘ikuisesti,' which means forever in Finnish, so I love that it has a personal touch to it!”

In addition to sharing photos of the sweet moment when Palve proposed, the 28-year-old also gave fans a closer look at her stunning engagement ring in an Instagram story.

‘Bachelor’ alum Haley Ferguson showed off her stunning oval engagement ring on Instagram. Image via Instagram/hfergie11.

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Both Ferguson and Bristowe opted for an elegant oval solo diamond, which appears to be trending this season among newly-engaged couples.

“[The] oval shaped diamond set on classic delicate solitaire setting in yellow gold reflects many on-trend styles – elongated diamonds that create a flattering look on finger, yellow gold, and understated silhouettes,” explained Kathryn Money, SVP, Merchandising and Retail at Brilliant Earth.

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“This ring style really lets the gorgeous diamond take centre stage.”

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Not only is it currently trending among celebrities like Hailey Bieber and Blake Lively, it’s also a classic look that stands the test of time.

ALSO SEE: ‘Young girls look up to you’: Addison Rae’s draws backlash for ‘inappropriate’ red carpet look

Even if you’re not currently planning an engagement, there’s never a bad time to look out for your dream ring online. We’ve gathered a few top picks to bookmark if you’re just as obsessed with Ferguson and Bristowe’s dreamy oval diamond rings as we are.

Petite Shared Prong Diamond Engagement Ring. Image via Brilliant Earth.

SHOP IT: Brilliant Earth, from $1,260

Oval Shape Moissanite Engagement ring. Image via Etsy.

SHOP IT: Etsy, from $280

The Signature. Image via Vrai.

SHOP IT: Vrai, from $1,129

Vera Wang Love Collection Certified Oval Diamond Frame Engagement Ring. Image via People’s Jewellers.

SHOP IT: People’s Jewellers, $11,000

Petite Micropavé Diamond Engagement Ring. Image via Blue Nile.

SHOP IT: Blue Nile, from $1,192

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