Birks Group to sell Mayor's Jewelers to Aurum Holdings for $104.6M
Birks Group announced that it has signed a definitive agreement to sell its subsidiary, Mayor's Jewelers to Aurum Holdings, a fine watch and jewelry retailer in the U.K., in a deal valued at approximately $104.6M. The transaction is subject to specified closing conditions and purchase price adjustments. The transaction is expected to close in the fall of 2017. As part of the transaction, Birks entered into a 5 year distribution agreement with Aurum to sell Birks fine jewelry in the U.K. at Mappin & Webb, Goldsmiths stores and on their e-commerce sites. Furthermore, the Birks collections will continue to be sold in the United States through Mayors' stores in Florida and Georgia. Proceeds from the transaction will be used by Birks to continue its strategic growth initiatives, specifically to invest in its Canadian flagship stores and new store concepts, as well as in its high-growth Birks brand wholesaling activities and e-commerce, as part of the Company's omni-channel plan. Transaction proceeds will also be used to pay down outstanding debt under the Company's senior secured credit facilities that include term debt and working capital debt associated with Mayors. Centered on Birks distinguished 138-year heritage, these investments are expected to accelerate revenue and EBITDA growth over the next few years.