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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Man runs off with $20K ring from Brockville jewelry store: police - Kingston
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Brockville police are looking for a man they say stole an expensive piece of jewelry from a Brockville store.
According to a Brockville police news release, on May 9, a man entered the 1000 Islands Mall and went to the Peoples Jewellers store.
Police say the man pulled a $20,000 ring off the hand of a staff member and then fled the mall.
The man was last seen leaving the mall in a white Dodge Durango.
Police are describing the suspected as Caucasian, with a slim build and average height.
They are asking anyone with information about the man to contact them at 613-342-0127 or Crime Stoppers at 1-800-222-TIPS.
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Flexiti Launches Buy Now Pay Later Financing at Maison Corbeil, Jardin de Ville, Home Société, MUST & La Galerie du Meuble
With Flexiti’s omni-channel financing solution, customers can apply for a FlexitiCard ® in-store at Maison Corbeil, Must, Jardin de Ville, Home Société and La Galerie du Meuble stores located in Quebec and Ontario. The paperless application takes minutes to complete and receive a response and upon approval, the FlexitiCard can immediately be used to make purchases. This fully automated and 100% paperless process offers qualified customers a revolving credit line and flexible payment plans with 0% interest financing 1 options, eliminating the need to reapply for financing for future purchases.
TORONTO — Flexiti Financial Inc. (“Flexiti”), a leading provider of point-of-sale consumer financing solutions for retailers, announced today that G2MC, a leading group of indoor and outdoor furnishings retailers, has launched its 0% interest financing 1 solution.
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“For more than 60 years, we have committed to serving our customers and making design accessible without compromise” said Louis Jean, Executive Vice President at G2MC. “With Flexiti’s financing solution, our customers have more options to bring home our selection of cutting-edge furniture from local and international designers. With 0% interest financing, great design is made even more affordable for our customers.”
“We are thrilled to welcome G2MC into the Flexiti Network,” said Peter Kalen, Founder and CEO of Flexiti. “G2MC and its family of stores allows our cardholders even more options to shop quality products with 0% interest financing. With their extensive network of stores across Ontario and Quebec, Maison Corbeil, Must, Jardin de Ville, Home Société and La Galerie du Meuble are fantastic additions to the growing Flexiti Network.”
1 O.A.C. Terms and conditions apply.
About G2MC
Created in 2013, G2MC is a corporate entity comprised of Maison Corbeil, La Galerie du Meuble, Jardin de Ville, Must and Home Société, retailers specializing in the sale of accessible and high-end indoor and outdoor furnishings. These retailers focus on a personalized shopping experience, offering contemporary-style furnishings that evolve with each new trend. In partnership with the private equity firm Corporation Financière Champlain, G2MC can become one of the leading design and furnishing providers in Quebec and Ontario.
About Flexiti
Flexiti is one of Canada’s fastest-growing point-of-sale lenders, offering customers 0% interest financing at retailers that sell big-ticket goods like furniture, appliances, jewellery and electronics. Through its award-winning buy-now-pay-later platform, customers can be approved instantly to shop with their FlexitiCard®, which they can use online or in-store to make multiple purchases, within their credit limit, without needing to reapply. Accepted at nearly 6,000 locations and ecommerce sites across Canada including The Brick, Leon’s, Staples, Sleep Country, Wayfair, Birks and Peoples Jewellers, Flexiti aims to make our customers’ lives more affordable and help our retail partners grow their sales by offering flexible financing options.
Flexiti’s growth, driven by its financing platform, is recognized as market leading. In 2019, Flexiti was named Canada’s 11th fastest growing company by the Globe and Mail, ranked 7th in the Deloitte Technology Fast 50TM program, and 40th in Deloitte North America Technology Fast 500TM. In 2020, Flexiti ranked 29th in The Americas’ 500 Fastest Growing Companies by the Financial Times, 6th in The Globe and Mail’s Canada’s Top Growing Companies, 3rd on the 2020 Growth List and 6th and 39th on Deloitte Technology Fast 50TM and Fast 500TM, respectively. Flexiti is a wholly-owned subsidiary of CURO Group Holdings Corp. (NYSE: CURO).
For more information, visit www.flexiti.com.
(CURO-NWS)
Source: CURO Group Holdings Corp.; Flexiti
View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005272/en/
Contacts
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Jason Kinnear
647-291-8026
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