UK-based watch and jewellery retailer Aurum has signed an agreement to acquire Birks Group subsidiary Mayor’s Jewelers for $104.6m.
As part of a five-year distribution agreement signed between the parties, Aurum will sell Birks fine jewellery in the UK at Mappin & Webb and Goldsmiths stores, as well as on their e-commerce sites.
Birks intends to strengthen the position of its brand through the distribution agreement.
Birks Group president and CEO Jean-Christophe Bédos said: “Aurum is a strategic buyer committed to continuing investing in Mayors’ long-term growth, and with whom we share many synergies.
“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.
“We believe that monetising 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, omnichannel business.”
Birks will utilise the sale proceeds from the transaction to continue its strategic growth initiatives, specifically to invest in its Canadian flagship stores and new store concepts.
The funds will also be used to invest in Birks' wholesaling activities and e-commerce, as part of the company’s omnichannel strategy.
The company is expected to use a portion of the sale proceeds to reduce outstanding debt under its senior secured credit facilities associated with Mayors.
Aurum started operating in 2007 and currently has more than 130 collective stores.