Signet Jewelers has entered into an agreement to acquire Diamonds Direct USA, an off-mall jeweler with 22 locations, in a $490 million all-cash transaction. Signet expects to benefit from Diamonds Direct’s bridal offerings and high-touch shopping experience, which has made it a destination for younger, luxury-oriented bridal shoppers.
Signet plans to drive operating synergies by leveraging its scale in purchasing, targeted marketing, connected commerce and jewelry services to enhance Diamonds Direct. The smaller retailer’s current leadership team will remain intact, with President Itay Berger reporting directly to Signet CEO Virginia Drosos.
“I am excited about Diamonds Direct joining the Signet family as we share a passion for company culture that prioritizes our team members, our customers and our community,” said Berger in a statement. “We are thrilled to continue to grow our business, leveraging Signet’s strengths and strategic capabilities to bring even more innovation and value to our signature shopping experience.”
The acquisition will help Signet Jewelers expand its physical footprint, building on the digital growth the retailer achieved through the acquisition of jewelry rental subscription platform Rocksbox in April 2021. The move was part of a push to accelerate the growth of the company’s services category.
Signet Jewelers has been closing stores over the past several years: 262 in 2018, 125 in 2019 and 230 in 2020, as part of its new focus on services and digital offerings. The efforts have paid off, and the company believes it is well-positioned for success in the final stretch of 2021.
“Customers are showing positive response to our new product launches, and the reduction in government stimulus and customer shift to spending on entertainment and travel are having less impact than we previously anticipated,” said Joan Hilson, Chief Financial and Strategy Officer at Signet Jewelers in a statement. “While there remain factors beyond our control, our strengthened supply chain and vendor partnerships gave us the ability to plan earlier receipt of holiday product, and we currently do not expect any material supply chain disruptions. Signet uses air freight for the transit of the vast majority of our merchandise, thus avoiding current ocean freight congestion.”