Blue Nile, the successful online jewellery company, has reached an agreement to be purchased by Bain Capital Private Equity and Bow Street LLC. The public company will become private, as the purchasing parties acquire 100 per cent of outstanding shares.
The all-cash deal, totaling approximately $500 million U.S., is expected to provide substantial value for stockholders, who will receive $40.75 U.S. per share. This is a 34 per cent increase over Blue Nile’s closing price on November 4, before the acquisition was announced.
“Since its inception, Blue Nile’s guiding principle has been to provide value to its customers, suppliers, and shareholders, and this transaction provides tremendous value to all,” said Harvey Kanter, Blue Nile’s chairman, CEO, and president. “Blue Nile will continue its innovative drive that has disrupted the diamond industry and made us the smartest, easiest, and most pressure-free way for consumers to buy a diamond.”
Blue Nile’s board of directors unanimously approved the deal, and recommended stockholders vote their shares in favour of the transaction.
“Blue Nile is a unique business with a strong platform in an industry that is rapidly evolving and migrating online,” said Howard Shainker, managing partner at Bow Street. “We are excited to work alongside Blue Nile management and Bain Capital to execute the company’s strategy.”
The deal is expected to close in the first calendar quarter of 2017, after which the company will remain headquartered in Seattle.
