Signet Jewelers To Acquire Zale, Deal Valued At $1.4 Bln - Quick Facts

(RTTNews) - Signet Jewelers Limited (SIG, SIG.L) and Zale Corp. (ZLC) said they have entered into a definitive agreement for Signet to acquire all issued and outstanding stock of Zale for $21.00 per share in cash consideration.

The offer represents a premium of 41 percent over Zale's closing price as of February 18. The transaction would be valued at around $1.4 billion.

The acquisition strengthens Signet's omni-channel presence with some of the most recognizable jewelry store brands in the world, each operating as stand-alone brands including Kay Jewelers, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Zales, and Peoples.

The transaction is expected to be high single-digit percentage accretive to earnings in the first full fiscal year after close, excluding acquisition accounting adjustments and one-time transaction costs.

As part of the transaction, Signet has entered into a voting and support agreement with Golden Gate Capital, the beneficial owner of approximately 22 percent of Zale's common stock.

The acquisition is expected to be financed through bank debt, other debt financing and the securitization of a significant portion of Signet's accounts receivable portfolio.