Retail jeweler Signet Jewelers Limited says it has completed the acquisition of Ultra Stores, Inc. from Crystal Financial LLC and its other stockholders for approximately US$57 million in cash.
Signet, the largest jewelry retailer in the United States and Britain, says it has not assumed any debt with the acquisition of Ultra Stores, a jewelry retailer with sales in its most recent fiscal year of around US$140 million.
Ultra operates 102 stores in outlet centers and through 38 other formats, primarily licensed jewelry departments.
The acquisition is expected to add US$40 million-US$45 million to Signet’s fiscal 2013 fourth quarter sales and to have minimal impact to the period’s earnings, including acquisition-related costs. The transaction is anticipated to be accretive to earnings by the fourth quarter of Signet’s fiscal 2014, including acquisition and integration costs.
"We are pleased to complete the acquisition of Ultra stores,” says Michael W. Barnes, Chief Executive Officer of Signet. “We expect Ultra to allow us to broaden our customer reach, build upon our market leadership position in specialty jewelry retail, and make Signet one of the leading jewelry players in the growing outlet channel."