Signet Jewelers to Buy Zale for $1.4 Billion

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Feb. 19 (Bloomberg) -- Signet Jewelers, operator of the Kay and Jared brands, agreed to buy Zale for about $1.4 billion, expanding its leadership as the largest jewelry chain in the U.S. Cristina Alesci reports on Bloomberg Television's "In The Loop." (Source: Bloomberg)

Bumping into one of these jewelry stores.

Now they are all going to be under the same parent.

Signet is the bigger, healthier company.

It never really got battered in the same way zales did because of the recession.

Zales was really on life support for a long time coming up in -- out of recession and needed emergency rescue financing.

Zales operates around 1600 stores and it will be combined with the signet's 1900 stores.

A behemoth.

What it will do is probably get some flexibility with their vendors.

Where they get the raw material for their product.

It could actually make the margins better for the combined company.

What about this being subject to shareholder approval?

Will it fly through?

From the zale side, because they got rescue financing, private equity owns 22% of the stock.

And golden gate already signaled they support this deal.

On the other hand, signet has an activist investor, big surprise.

We know back in january signet met with a guy who came out of ichahn's ferments spun off.

He took a position in signet.

We have to see what keith meister says about this deal but it does seem like a very good deal for zale investors.

40% premium over whether stock is trading.

It could be a match made in heaven.

We will see.

This text has been automatically generated. It may not be 100% accurate.

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