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Signet Jewelers Limited (SIG)

- NYSE
  • May. 29, 2014, 5:22 PM
    • Signet Jewelers (SIG) completes its $1.46B acquisition of Zale (ZLC) after winning approval from a majority of ZLC shareholders. overcoming opposition from some major shareholders (I, II) and proxy adviser Glass Lewis.
    • SIG, already the largest U.S. operator of jewelry stores before the deal, is now nearly 3x bigger than the upscale Tiffany (TIF) in terms of U.S. sales, with a 14.6% market share.
    • SIG says it expects the acquisition will increase its per-share earnings in the high single-digits on a percentage basis after a year, and generate cost savings of $100M after three years.
    • SIG +3.5% in today's trade.
    | 1 Comment
  • May. 23, 2014, 6:16 PM
    • Mario Gabelli becomes the second large Zale's (ZLC) shareholder to come out against the proposed sale to Signet (SIG), saying he may seek a second opinion on the deal's $21/share price in court.
    • Gabelli, whose funds own 7.45% of ZLC, says in an SEC filing he had "commenced the process to be able to assert appraisal rights" - a legal process that lets shareholders reject a merger deal and instead ask a judge to independently value their shares.
    • Another large Zale investor, TIG Advisors, is trying to rally opposition to the sale ahead of a vote set for next Thursday, but Golden Gate Capital, which controls 23% of ZLC, plans to vote in favor of the deal.
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  • May. 9, 2014, 5:54 PM
    • Zale (ZLC) investor TIG Advisors urges shareholders to join it at a special May 29 meeting of shareholders in opposing a $1.4B takeover by Signet Jewelers (SIG), arguing that the $21/share offer is "grossly unfair."
    • Instead of the price the two diamond sellers agreed upon, TIG says it should be able to get $28.60/share in cash and stock, according to an SEC filing from the 9.5% owner of ZLC shares.
    • ZLC rose 3.2% today, rising sharply toward the end of the session after TIG filed its position; SIG closed 1% lower.
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  • Feb. 19, 2014, 3:17 PM
    • The merger between Signet (SIG +18.5%) and Zale (ZLC +40.2%) gives the combined company extra clout when sourcing its products, according to Citigroup.
    • The investment firm also likes the ability of brands to be cross-sold in new channels and for the jewelry sellers to strike synergies in key areas.
    • A rationale reduction of Zale's store count will create even more upside.
    • The clash of cultures shouldn't be too great with execs swapping back and forth between Zale and Signet over the years. Zale’s non-executive chairman, Terry Burman, is former Signet CEO.
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  • Feb. 19, 2014, 7:37 AM
    • Signet (SIG) confirms its acquisition of Zale (ZLC) in a transaction valued at close to $1.4B. Large Zale stakeholder Golden Gate Capital is on board with the deal.
    • The company expects to finance the transaction through bank debt and a securitization of its accounts receivable portfolio.
    • The merger is expected to be accretive in the first year at a high single-digit percentage.
    • What to watch: Zale's international business and strong online business strengthen a couple of areas Signet had room to improve. The combined company will also yield some improved pricing power.
    • Premarket action: ZLC +40.8% to $20.99 and SIG +11.0% to $88.
    | 1 Comment
  • Feb. 19, 2014, 7:24 AM
    • Signet (SIG) has agreed to acquire Zale (ZLC) for $21 per share, according to a report from the Financial Times.
    • ZLC +18.3% premarket to $17.64.
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  • Feb. 16, 2012, 10:06 AM
    M&A chatter keeps percolating along (previous) on a possible merger between Zale (ZLC +5.1%) and Signet (SIG +2.1%). Despite a hefty long-term debt load, Zale makes for an attractive play at $5 or $6 a share for Signet in a deal that could be accretive to earnings in the first year.
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  • Feb. 16, 2012, 8:22 AM
    Zale (ZLC) +5.4% premarket on speculation that the jeweler could prosper in a marriage to larger rival Signet (SIG). "The Zale name has taken a beating, but it's still a brand that people know," one investment banker says. "Signet is more skilled at marketing, so with them at the helm at Zale, it could become a prominent name again." SIG -0.6% premarket.
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SIG vs. ETF Alternatives
Company Description
Signet Jewelers Ltd is engaged in retailing of jewelry, watches and associated services. The Company's operational divisions are in United Kingdom and United States.
Sector: Services
Industry: Jewelry Stores
Country: United States