Blue Nile To Be Sold For $500 Mn

Solitaire - - SPECTRUM -

Lead­ing on­line jew­eller Blue Nile en­tered into an agree­ment to be ac­quired by an in­vestor group com­pris­ing funds man­aged by Bain Capital Pri­vate Equity and Bow Street LLC.

The in­vestor group will ac­quire 100% of the out­stand­ing shares of Blue Nile com­mon stock for ap­prox­i­mately $500 mil­lion in an all-cash deal. Blue Nile stock­hold­ers will re­ceive $40.75 in cash per share, rep­re­sent­ing a pre­mium of ap­prox­i­mately 34% over Blue Nile’s clos­ing price on Novem­ber 4th 2016.

“Since its in­cep­tion, Blue Nile’s guid­ing prin­ci­ple has been to pro­vide value to its cus­tomers, sup­pli­ers, and share­hold­ers, and this trans­ac­tion pro­vides tremen­dous value to all,” said Blue Nile chair­man, CEO and pres­i­dent Har­vey Kan­ter. “Blue Nile will con­tinue its in­no­va­tive drive that has dis­rupted the di­amond in­dus­try and made us the smartest, eas­i­est, and most pres­sure-free way for con­sumers to buy a di­amond.”

“This is an op­por­tu­nity to ac­quire a true dis­rup­tor in a fun­da­men­tally at­trac­tive and grow­ing seg­ment of the di­amond in­dus­try,” said Ryan Cot­ton, manag­ing di­rec­tor at Bain Capital Pri­vate Equity. “Blue Nile pro­vides a clearly su­pe­rior con­sumer value propo­si­tion and of­fers a con­ve­nient de­liv­ery model that en­ables choice and se­lec­tion in a no-pres­sure en­vi­ron­ment. We be­lieve the com­pany will con­tinue to grow as ed­u­cated con­sumers con­tinue to seek easy and con­ve­nient shop­ping ex­pe­ri­ences that de­liver trans­par­ent pric­ing and en­hanced value.”

“Blue Nile is a unique business with a strong plat­form in an in­dus­try that is rapidly evolv­ing and mi­grat­ing on­line,” said Howard Shainker, manag­ing part­ner at Bow Street. “We are ex­cited to work along­side Blue Nile man­age­ment and Bain Capital to ex­e­cute on the com­pany’s strategy.”

Blue Nile’s board of di­rec­tors unan­i­mously ap­proved the deal and rec­om­mended that stock­hold­ers vote their shares in favour of the trans­ac­tion. Blue Nile will be­come a pri­vately-held com­pany and con­tinue to be head­quar­tered in Seat­tle, WA. Clos­ing of the deal is sub­ject to cus­tom­ary con­di­tions, in­clud­ing the ap­proval of Blue Nile’s stock­hold­ers and re­quired reg­u­la­tory ap­provals. There are no fi­nanc­ing con­di­tions as­so­ci­ated with the pro­posed ac­qui­si­tion.

The trans­ac­tion is ex­pected to close in the first cal­en­dar quar­ter of 2017. Un­der the terms of the merger agree­ment, Blue Nile may so­licit al­ter­na­tive ac­qui­si­tion pro­pos­als from third par­ties dur­ing a 30-day “go-shop” pe­riod, fol­low­ing the date of ex­e­cu­tion of the merger agree­ment.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.