Connect with us

Headlines

Blue Nile to Be Acquired for $500M

It will become a private company.

mm

Published

on

Online jeweler Blue Nile (Nasdaq: NILE) is set to be acquired in a $500 million deal that will take the company private.

The company announced that it has entered into a definitive agreement to be bought by an investor group made up of funds managed by Bain Capital Private Equity and Bow Street LLC.

In the all-cash deal, the investor group will acquire 100 percent of the outstanding shares of Blue Nile common stock. Blue Nile stockholders will receive $40.75 in cash per share, representing a premium of approximately 34 percent over Blue Nile’s closing price on Nov. 4.

The transaction is expected to close in the first quarter of 2017.

“Since its inception, Blue Nile’s guiding principle has been to provide value to its customers, suppliers, and shareholders, and this transaction provides tremendous value to all,” said Harvey Kanter, Blue Nile’s chairman, CEO and president.

Ryan Cotton, managing director at Bain Capital Private Equity, said the deal represents “an opportunity to acquire a true disruptor in a fundamentally attractive and growing segment of the diamond industry.”

Advertisement

“We believe the company will continue to grow as educated consumers continue to seek easy and convenient shopping experiences that deliver transparent pricing and enhanced value,” he said.

Blue Nile’s board of directors unanimously approved the deal and recommended that stockholders vote their shares in favor of the transaction. Blue Nile will become a privately held company and continue to be headquartered in Seattle, WA.

The deal is subject to customary closing conditions, including the approval of Blue Nile’s stockholders and required regulatory approvals.


Read more from Blue Nile

Advertisement

SPONSORED VIDEO

Celebrate Your Retirement with Wilkerson

For nearly three decades, Suzanne and Tom Arnold ran a successful business at Facets Fine Jewelry in Arlington, Va. But the time came when the Arnolds wanted to do some of the things you put off while you’ve got a business to run. “We decided it was time to retire,” says Suzanne, who claims the couple knew how to open a store, how to run a store but “didn’t know how to close a store.” So, they hired Wilkerson to do it for them. When she called, Suzanne says Wilkerson offered every option for the sale she could have hoped for. Better still, “the sale exceeded our financial goals like crazy,” she says. And customers came, not only to take advantage of the going-out-of-business buys and mark-downs, but to wish a bon voyage to the beloved proprietors of a neighborhood institution. “People were celebrating our retirement, and that was so special,” says says.

Promoted Headlines

Most Popular