Boston, MA 02\/19\/2014 (wallstreetpr) –\u00a0Zale Corporation (NYSE:ZLC) <\/b>and larger player in the jewellery retail segment, Signet Jewellers Ltd have announced a definitive agreement to acquire outstanding Zale stock. Signet will pay $21 per share of Zale and is likely to be a cash consideration.<\/p>\n
Zale Corporation (NYSE:ZLC) <\/b>will cost Signet jewellers Ltd. $690 million to penetrate the North American user segment where Zale holds sway. Share prices of both the company\u2019s rose by double digits following the announcement.<\/p>\n
Why Zale was right for Signet<\/b><\/p>\n
Zale Corporation (NYSE:ZLC) has more than 1,124 specialty stores with 654 kiosks especially in malls and high traffic areas in the US, Canada as well as Peurto Rico. Besides it has five brands which are hugely popular and are typically sold at the kiosks of malls.<\/p>\n
Zale Corporation (NYSE:ZLC)<\/b> is also known to provide insurance cover as well as reinsurance services, with the primary market being the private label credit card. Signet will now, post the acquisition will now be able move in its own brands \u2013 Kay, Jared H.Samuel as well as Ernest Jones. Signet has over 3,000 locations and about 500 across United Kingdom as well.<\/p>\n
According to Mike Barnes, the CEO of Signet, the acquisition of Zale Corporation (NYSE:ZLC) to give Signet a massive fillip on the international market scene. The company expects to see growth and innovation.<\/p>\n
Post the acquisition, Zale will continue to be operated by Theo Killion, the current CEO, but will operate with having to report back to Barnes.<\/p>\n
Besides, the holding company in Zale, Golden Gate Capital, which holds 22% stake in Zale has been supporting the acquisition.<\/p>\n
As Signet Jewellers Ltd. (<\/b>NYSE<\/b>:SIG)<\/b> ventures beyond the well-established and familiar locations, it is expected to leverage Zela infrastructure logistics and brand-value to bring in higher revenues for itself.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 02\/19\/2014 (wallstreetpr) –\u00a0Zale Corporation (NYSE:ZLC) and larger player in the jewellery retail segment, Signet Jewellers Ltd have announced a definitive agreement to acquire […]<\/p>\n","protected":false},"author":32,"featured_media":4687,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[1340,1338,4657,2233],"stock_ticker":[],"class_list":["post-15608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysesig","tag-nysezlc","tag-signet-jewellers-ltd-nysesig","tag-zale-corporation-nysezlc","entry"],"acf":[],"yoast_head":"\n