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Birks Sells Mayor’s to UK Group for $105M
Aug 13, 2017 7:13 AM
By Rapaport News
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RAPAPORT... Birks Group has agreed to sell Mayor’s
Jewelers to Aurum Holdings, the UK’s largest fine watch and jewelry retailer,
for $104.6 million.
Birks expects to complete the sale of the
subsidiary this fall, with the deal subject to closing conditions and
adjustments to the purchase price, the Canada-based jeweler said Friday.
“This transaction is a significant step in
our efforts to strengthen our balance sheet to better position the company for
growth as well as long-term shareholder value,” said Birks CEO Jean-Christophe
Bédos.
Birks will use proceeds from the deal to
continue its growth plans and invest in its Canadian flagship stores and new
store concepts, as well as in its wholesale and e-commerce businesses. It will
also use the cash to pay off certain debts, the company said.
“We believe that monetizing the value of
Mayor’s gives us the ability to execute our strategic vision of investing in
the Birks brand together with the retailing of internationally renowned jewelry
and timepiece brands in Canada, thus transforming Birks into a global,
omnichannel business,” added Bédos.
Under the deal, jewelry collections with the Birks brand will
become available in the UK at Aurum-owned jewelry chains Mappin & Webb and
Goldsmiths through a distribution agreement. Mayor’s will also continue to sell
Birks products at its US stores in Florida and Georgia. |
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Tags:
birks group, Canada, Mayor's, Mayor's Jewelers, Rapaport News, retail, UK
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