Zale Corporation (ZLC)

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Signet Jewelers to acquire Zale for $21 per share

7:33 AM ET 2/19/14 | MarketWatch

By Ben Fox Rubin

NEW YORK (MarketWatch) -- Signet Jewelers Ltd. agreed to buy smaller rival Zale Corp. for about $690 million, expanding the jewelry retailer's international presence.

Signet(SIG) will offer $21 in cash for each Zale(ZLC) share, representing a 41% premium over Tuesday's closing price. The companies said the deal's enterprise value is about $1.4 billion, which generally includes debt.

As part of the transaction, Signet said it entered into a voting and support agreement with Golden Gate Capital, the beneficial owner of about 22% of Zale's shares.

Zale shares last traded above the offer price in 2008 and fell below $2 a share in mid-2010 when the company was fighting for survival and faced a tight liquidity squeeze.

The operator of Zales Jewelers, Gordon's Jewelers and other jewelry stores has mostly reported higher revenue in recent quarters, as the company's moves to roll out new branded products and raise prices have helped lift same-store sales.

Last year Zale named former Signet Chief Executive Terry Burman as its chairman.

-Ben Fox Rubin ; 415-439-6400; [e-mail]

> Dow Jones Newswires

February 19, 2014 07:33 ET (12:33 GMT)

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