Birks Group Inc. recently signed an agreement to sell Mayor’s Jewelers, Inc., its subsidiary company, to Aurum Holdings Ltd. The deal, valued at around US$ 104.6 million, is expected to close sometime in the fall of 2017, “subject to specified closing conditions and purchase price adjustments”, the Company announced. “The agreement is an important achievement in the Company’s strategy to develop the Birks brand into a global luxury brand,” Birks said.   

 Aurum is said to be the largest fine watch and jewellery retailer in the U.K., and will sell Birks fine jewellery in that market through its Mappin & Webb, Goldsmiths stores and on its e-commerce sites, under a five-year distribution agreement, which is part of the larger transaction.

The Birks collections will continue to be sold in the United States through Mayors’ stores in Florida and Georgia, the Company noted.  

“We are pleased to have entered into this agreement with Aurum,” commented Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group.  “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, omni-channel business.”

He added: “This transaction with Aurum also opens the doors to the U.K. market for our jewellery collections and we are extremely proud to join such a prestigious network as Aurum’s under the Mappin & Webb and Goldsmiths banners. We look forward to introducing the Birks brand in other markets as well.”

Brian Duffy, President of Aurum, said: “We are delighted to have entered into an agreement to acquire Mayor’s by the Aurum Group. We have admired Mayors for some time and see a great deal of similarities with how we operate our business in the U.K. Mayors has built a fantastic reputation in Florida and Atlanta, Georgia over many decades.”

Duffy added: “This news follows our announcement to open a flagship Watches of Switzerland store in Hudson Yards (New York City) and confirms the ambition of our group to be an important part of the Swiss watch market in the USA.”

Outlining its future plans, Birks said that proceeds from the transaction will be used by Birks to continue its strategic growth initiatives, “specifically to invest in its Canadian flagship stores and new store concepts, as well as in its high-growth Birks brand wholesaling activities and e-commerce, as part of the Company’s omni-channel plan”. Part of the   proceeds will also be used to pay outstanding debt under the Company’s senior secured credit facilities.