Signet Jewelers Ltd. (SIG, SIG.LN) said it completed its $1.46
billion acquisition of Zale Corp. after the deal won approval by a
majority of Zale's shareholders on Thursday.
The combination creates one of the largest global specialty
jewelry retailers with more than 3,600 locations.
The acquisition had been opposed by Zale shareholder TIG
Advisors LLC and proxy adviser Glass, Lewis & Co., which had
urged shareholders to reject the $21 a share offer. TIG had
maintained that the deal undervalued Zale. The transaction also had
faced opposition from investor Mario Gabelli.
On Thursday, Signet said it expected the acquisition would
increase its per-share earnings in the high single-digits on a
percentage basis after a year, and would generate cost savings of
$100 million after three years.
Signet promoted Mark Light, the head of its Sterling Jewelers
business in the U.S., to the newly created role of president and
chief operating officer of Signet Jewelers. Sebastian Hobbs, U.K.
managing director, will now report directly to Mr. Light.
Zale CEO Theo Killion will lead Zale as a separate division
within Signet. He will report to Signet CEO Mike Barnes.
Signet has initiated a search to fill the roles of chief
marketing and strategy officer, and chief information officer.
Signet shares traded recently at $108.05, up 3.2%.
Write to Tess Stynes at tess.stynes@wsj.com
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