Connect with us

Headlines

Signet to Acquire James Allen in $328M Deal

mm

Published

on

It’s a ‘highly strategic acquisition.’

Signet Jewelers Ltd. (NYSE: SIG) announced that it will buy R2Net, owner of online jewelry retailer JamesAllen.com, for $328 million.

“This is a highly strategic acquisition for Signet,” said Virginia C. Drosos, CEO of Signet. “The James Allen brand and R2Net’s technologies and innovative approach present a unique opportunity to rapidly enhance our digital capabilities and create a distinctive customer shopping experience which more seamlessly integrates our digital and physical retail platforms.”

In addition to JamesAllen.com, R2Net owns Segoma Imaging Technologies, which “provides R2Net machines to enable delivery of next-generation digital shopping experience for jewelry,” according to a press release. R2Net’s technologies include 360° Diamond Display Technology, Virtual Ring Sizer and Ring Try-On mobile application.

“We founded JamesAllen.com with a mission to offer beautiful rings, simplicity, selection, pricing transparency and overall value to consumers online,” said Oded Edelman, co-founder and CEO of R2Net. “By joining forces with Signet, we believe we will be able to accelerate the growth of JamesAllen.com and our adjacent R2Net businesses while continuing to build on our unique culture and technology.”

The transaction is expected to close in the third quarter of fiscal 2018. It is subject to customary closing conditions and regulatory approval.

Founded in 2006, R2Net is headquartered in New York and maintains operations globally, including technology innovation centers in Israel and 24/7 customer service operations in Frederick, MD.

Advertisement

Signet is the parent of Sterling Jewelers, which operates Jared the Galleria of Jewelry, Kay Jewelers and Zales.

The all-cash deal will be financed with a term loan provided by JPMorgan Chase Bank N.A. The loan is expected to be repaid in full by the end of fiscal 2018, according to the release.

R2Net brands will largely operate as an independent division of Signet and its current leadership team will remain intact.

In addition to his role as president of JamesAllen.com, Edelman will become chief digital innovation adviser of Signet.

Edelman and the R2Net founders have agreed, subject to the completion of the transaction, to invest a portion of their transaction proceeds in Signet shares.

Advertisement

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | Sollberger’s

Going Out of Business Is an Emotional Journey. Wilkerson Is There to Make It Easier.

Jaki Cowan, the owner of Sollberger’s in Ridgeland, MS, decided the time was right to close up shop. The experience, she says, was like going into the great unknown. There were so many questions about the way to handle the store’s going-out-of-business sale. Luckily for Cowan, Wilkerson made the transition easier and managed everything, from marketing to markdowns.

“They think of everything that you don’t have the time to think of,” she says of the Wilkerson team that was assigned to manage the sale. And it was a total success, with financial goals met by Christmas with another sale month left to go.

Wilkerson even had a plan to manage things while Covid-19 restrictions were still in place. This included limiting the number of shoppers, masking and taking temperatures upon entrance. “We did everything we could to make the staff and public feel as safe as possible.”

Does she recommend Wilkerson to other retailers thinking of retiring, liquidating or selling excess merchandise? Absolutely. “If you are considering going out of business, it’s obviously an emotional journey. But truly rest assured that you’re in good hands with Wilkerson.”

Promoted Headlines

Most Popular