DALLAS (AP) – Signet Jewelers is buying Zale Corp. for approximately $690 million to help diversify its business and expand further internationally.
Shares of Zale soared more than 39 percent in Wednesday premarket trading, while Signet Jewelers Ltd.’ stock rose more than 9 percent.
Signet, whose brands include Kay Jewelers and H. Samuel — will pay $21 per share, a 41 percent premium to Zale’s $14.91 Tuesday closing price. The companies put the deal’s total value at about $1.4 billion.
Zale has approximately 32.9 million outstanding shares, according to FactSet.
The acquisition still needs approval from Zale shareholders. Theo Killion is expected to remain Zale CEO.
The deal is expected to add to earnings by a high single-digit percentage rate in the first full fiscal year after the transaction closes, excluding acquisition accounting adjustments and one-time costs.
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
- Dallas PD Looking For Missing Elderly Man
- Parsons Agrees To Four-Year Max Deal With Memphis
- Jury Convicts Texas Child Molester, Gives 25 Year Sentence
- Reports: Stars Agree To Deal With Defenseman Hamhuis
- O.J. Mayo Dismissed, Disqualified From NBA For Drug Violation
- Driveway Robbers Threaten Grandparents With 4-Year-Old
- The First, Legal Gay Marriage In Texas?
- Woman Dies In Fort Worth Stockyards Shooting
- Cowboys Pre-Combine Mock Draft
- Dallas Firefighter Remembered At Funeral
- PHOTOS: Your Pet Pictures