Canada’s Birks Group has acquired European Boutique’s luxury watch and jewellery business from its founders, the Sutkiewicz family, for C$9m ($6,574,000).
Based in Toronto, Canada, European Boutique operates four multi-brand luxury watch and jewellery stores at Yorkdale, Square One, the Toronto Eaton Centre and Sherway Gardens malls.
It also manages three mono-brand boutiques for OMEGA, Breitling and Montblanc, alongside integrated storefronts for brands such as TAG Heuer, GUCCI and Diamonds Direct.
In addition to its physical stores, European runs a national e-commerce platform at European.ca, offering a wide range of watches and jewellery across Canada.
Birks Group has secured a licensing agreement to operate the Canadian brand Diamonds Direct.
To finance the acquisition, Birks Group has obtained $13.5m incremental loan from SLR Credit Solutions, one of its existing senior lenders.
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By GlobalDataPart of the loan proceeds funded the acquisition, with the remainder allocated to ordinary course working capital.
This incremental loan has interest at the same rate as the existing $12.5m term loan with SLR.
Birks Group has also entered into a $3.75m loan agreement with Mangrove Holding, one of the controlling shareholders of Birks Group.
The loan carries an annual interest rate of 15% and is repayable in full by 24 December 2026. These funds will also support ordinary course working capital.
Birks Group remains focused on pursuing strategic goals, including exploring further transactions to raise additional capital through public or private equity, debt financing or the completion of strategic acquisitions.
Birks Group president and CEO Jean-Christophe Bédos stated: “We are delighted to complete the acquisition of European.
“The European stores have prime locations in important malls in the Greater Toronto Area and carry high-end luxury brands which will complement Birks Group’s offering. “We now enter into a period of transition where we will be liaising closely with the European team and we look forward to welcoming Jordan Sutkiewicz, Michelle Ceresney and European’s employees to the Birks family.”
