Blue Nile To Be Sold For $500 Mn
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.