Associated Press News Release
DALLAS (AP) -- Signet Jewelers is buying Zale Corp. for approximately $690 million to help diversify its business and expand further internationally.
Shares of Zale soared more than 39 percent in Wednesday premarket trading, while Signet Jewelers Ltd.' stock rose more than 9 percent.
Signet, whose brands include Kay Jewelers and H. Samuel -- will pay $21 per share, a 41 percent premium to Zale's $14.91 Tuesday closing price. The companies put the deal's total value at about $1.4 billion.
Zale has approximately 32.9 million outstanding shares, according to FactSet.
The acquisition still needs approval from Zale shareholders. Theo Killion is expected to remain Zale CEO.
The deal is expected to add to earnings by a high single-digit percentage rate in the first full fiscal year after the transaction closes, excluding acquisition accounting adjustments and one-time costs.