You can never have enough diamonds. If you’re Signet Jewelers that’s an accurate statement. The parent company of Kay Jewelers and Jared the Galleria of Jewelry is adding to its inventory by purchasing Zale Corporation, the parent company of jewelry store Zales.
Under the $1.4 billion deal Signet Jewelers will pay $21 in per share in cash for Zale Corporation, Forbes reports.
Signet Jewelers officials say the purchase of Zale will strengthen the Signet portfolio and create better choices for consumers.
“The addition of Zale to the Signet family is consistent with our long-term growth strategy and leverages our combined operating expertise to create better choices for our customers, new opportunities for our employees, and makes us a more attractive partner to our vendors,” Signet CEO Mike Barnes said in a statement Wednesday morning. “In addition, it allows us to better optimize our balance sheet, creating long-term value for our shareholders.”
Signet operates 1,400 stores in the United States and 500 in Britain, while Dallas-based Zale has 1,680 stores in the U.S., Canada and Puerto Rico.
So, does this mean more cheesy commercials ala “He went to Jared” or “Every kiss begins with Kay”? It’s to early to tell, but we’re already bracing for the over abundance of lovey-dovey, eye roll inducing jewelry commercials.