Blue Nile to Become a Public Company Again
It is merging with a special purpose acquisition company called Mudrick Capital Acquisition Corporation II.
Blue Nile was publicly traded until its acquisition by Bain Capital Private Equity and Bow Street LLC in a $500 million deal that shareholders approved in February 2017.
The deal with SPAC Mudrick values Blue Nile at $683 million and puts the value of the combined companies at $873 million.
The transaction is expected to generate about $450 million of capital, including $50 million in new preferred equity provided by Mudrick and $80 million in PIPE (private investment in public equity) capital from existing Blue Nile backers Bain Capital Private Equity, Bow Street and Adama Partners, as well as from Mudrick, the company said.
Current Blue Nile CEO Sean Kell and his current management team will continue to lead the retailer post-acquisition. Kell has been at the helm since August 2019.
The company will still be called Blue Nile and is expected to trade on NASDAQ.
“Over the past two and a half years we have successfully transformed and elevated Blue Nile as a thriving fine jewelry and lifestyle brand, and we are excited about the growth opportunities that lie ahead,” Kell said.
“We have only scratched the surface of an estimated $320 billion global fine jewelry market that has been slow to move online and remains fragmented. As we look to execute our growth strategy, now is the right time to become a public company.”
The boards of directors of Blue Nile and Mudrick Capital Acquisition Corporation II have approved the transaction.
It still requires the approval of Mudrick stockholders and is subject to other customary closing conditions.
The deal is expected to close early in the fourth quarter of 2022.
Blue Nile ranked No. 10 among North America’s top jewelry sellers in National Jeweler’s 2022 State of the Majors report, with an estimated $741 million in jewelry sales.
The company launched as an online-only retailer in 1999 but has opened a number of “asset light” showrooms over the years—physical locations with a small amount of inventory for customers to try on, though they still place their orders online.
It currently has 18 physical locations, with new stores coming soon at Lenox Square mall in Atlanta and at the Mall of America, according to its website.
It plans to have opened approximately 40 showrooms by the end of 2023.
The Latest
The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.