Birks Group has sold its corporate sales division to Rideau Recognition Solutions for $5.6 million Cdn.
Also known as ‘Birks’ Business,’ the division provides corporate clients with items for recognition programs, service awards, and business gifts.
Under the terms of the agreement, Rideau—which specializes in employee recognition and reward solutions—acquired the division’s existing inventory.
The deal calls for Birks to supply Rideau with Birks-branded jewellery and watches and receive ongoing royalty payments related to the licence of the Birks Business brand and future sales of Birks-branded products.
“The sale of our corporate sales division is part of our long-term strategy to focus our efforts and resources on our core objectives to develop and grow the Birks product and retail brands,” said Jean-Christophe Bédos, president and chief executive officer (CEO) of Birks Group.
“By unlocking the value of our corporate sales operations through this agreement with Rideau, we will reinvest the funds to continue to strengthen our retail distribution with the goal of generating long-term brand and shareholder value. Rideau’s team members are seasoned experts in the field of employee recognition and corporate gifting. We are pleased our corporate sales division employees are joining the Rideau team and are confident Rideau, with the addition of this corporate sales team, will be a great partner in delivering the superior brand experience that Birks business customers expect.”
Rideau CEO Peter W. Hart described the partnership as having “great synergy.”
“We’re combining the power of the Birks brand with the strength of Rideau’s technology, distribution capabilities, and leadership in the recognition market,” he said.
“Both companies are made stronger because of it. I speak on behalf of our employees when I say we’re honoured by this vote of confidence from this iconic Canadian company.”
