|Diamond jewelry retailer Signet Jewelers Limited (Signet) has announced that it has completed its acquisition of R2Net, which is the owner of fast-growing online jewelry retailer JamesAllen.com and Segoma Imaging Technologies.
Bringing together Signet's jewelry retail platforms and R2Net's innovation capabilities and digital technology, the deal is expected to accelerate Signet's execution of its Customer-First OmniChannel strategy, while adding a fast-growing millennial online retail brand to Signet's portfolio.
"We are pleased with the rapid completion of the R2Net acquisition, which supports our focus on enhancing OmniChannel consumer experience and building a culture of innovation and agility across our organization," said Virginia C. Drosos, Chief Executive Officer of Signet.
Continues Drosos: "This strategic acquisition will allow us to accelerate digital innovation and create an engaging and exciting shopping experience, seamlessly integrated across Signet's physical and online retail platforms. Together with the R2Net team, we believe we can lead transformation in the jewelry sector by digitizing how we engage, communicate and serve consumers whenever and wherever they desire."
Under the terms of the agreement, Signet paid US$328 million in cash, subject to customary post-closing adjustments provided in the agreement. The company notes that the transaction was financed with a term loan provided by JPMorgan Chase Bank, N.A., which is expected to be repaid in full by the end of fiscal 2018. As a sign of commitment to the long-term vision of Signet and R2Net, Mr. Edelman and the R2Net founders have agreed to invest a portion of their transaction proceeds in Signet shares.
In Fiscal 2018, the company expects R2Net to contribute approximately US$80 million to US$90 million to revenue. As previously announced, R2Net brands will largely operate as an independent division of Signet under the leadership of Oded Edelman. In addition to this role, Edelman will become Chief Digital Innovation Advisor of Signet, reporting directly to Drosos and assuming responsibility for driving Signet's digital innovation strategy.