The Montreal-based designer and jewellery manufacturer, Birks Group Inc., has sold its U.S. subsidiary, Mayors Jewelers Inc., to U.K. retailer, Aurum Holdings Ltd. for $104.6 million
“This transaction is a significant step in our efforts to strengthen our balance sheet to better position the company for growth as well as long-term shareholder value,” Jean-Christophe Bédos, president and CEO of Birks Group. “We believe that monetizing the value of Mayors gives us the ability to execute our strategic vision of investing in the Birks brand together with the retailing of internationally renowned jewellery and timepiece brands in Canada, thus transforming Birks into a global, omni-channel business.”
The Canadian company entered a five-year distribution agreement with Aurum to sell Birks’ fine jewellery in the U.K. The Birks collection will continue to be sold in the U.S. 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.
