Financials

Blue Nile to Be Acquired by Investor Group for $500M

FinancialsNov 07, 2016

Blue Nile to Be Acquired by Investor Group for $500M

Bain Capital Private Equity and Bow Street have entered into an agreement to buy the online retailer and take it private.

2016_Blue-Nile-logo.jpg

Seattle--Blue Nile announced Monday that is has entered into a definitive agreement to be acquired by Bain Capital Private Equity and Bow Street LLC.

Under the terms of the proposed all-cash deal, Bain and Bow will acquire all outstanding shares of the online retailer’s common stock for $500 million.
Stockholders will receive $40.75 per share, a premium of 34 percent over Blue Nile’s Nov. 4 closing price.

Blue Nile, which trades on NASDAQ as NILE, will become a private company, with its headquarters staying in Seattle.

The transaction is expected to close in the first calendar quarter of 2017, though the e-tailer does have a 30-day “go-shop” period in which it can solicit acquisition proposals from other companies.

Monday morning’s news release on the acquisition did not provide any details on possible changes in executive management.

National Jeweler will follow up with a more in-depth story on the acquisition in Tuesday’s daily newsletter.

News of Blue Nile’s pending sale came as the e-tailer, which is struggling to compete with other online jewelry sellers and the improved websites of brick-and-mortar retailers, announced another quarter of weak sales.

Net sales in the third quarter ended Oct. 2 were down 4 percent year-over-year to $105.1 million while net income slipped from $2.0 million to $1.3 million.

U.S. engagement ring sales fell 9 percent year-over-year in the period to $59.5 million, while sales of non-engagement jewelry in the United States rose 1 percent to $25.3 million.

International sales totaled $20.3 million, a 2 percent increase compared with the third quarter 2015.

Gross profit for the quarter totaled $20.6 million, or 19.6 percent of net sales, compared with $21.2 million, or 19.3 percent of net sales, in the third quarter 2015.

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Daymond John
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las Vegas

The entrepreneur and “Shark Tank” star will share his top tips for success.

Dukachi Easter Bread Pendant
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ Pendant

The Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.

Bremer Jewelry
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated Store

The jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.

gia-topimage 0325.jpg
Brought to you by
A Brilliant Future Is Here

Get online education from GIA experts.

Tiffany & Co. Strong Like Mom campaign
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day Campaign

The “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.

Weekly QuizApr 18, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Athena Calderone x John Hardy Collection
CollectionsApr 17, 2025
John Hardy, Athena Calderone Partner on Art Deco Decor-Inspired Collection

Interior designer Athena Calderone looked to decor from the 1920s and 1930s when crafting her first fine jewelry collection.

Natural Diamond Council Diamond Learning Center Graphic
Lab-GrownApr 17, 2025
NDC Launches Its Diamond Learning Center

The free program provides educational content for jewelry salespeople and enthusiasts to learn or refresh their diamond knowledge.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Jewelers of America logo
Policies & IssuesApr 17, 2025
Jewelers of America Requests Tariffs Testimonials from Members

The feedback will be used to prepare other jewelers for the challenges ahead, the organization said.

Technology Therapy Group logo
TechnologyApr 17, 2025
Technology Therapy Group Expands AI Training for Jewelry Retailers

The online sessions are designed to teach jewelers to use AI tools like ChatGPT and Claude to grow their business.

Catbird Chicago
IndependentsApr 16, 2025
Catbird Expands to Chicago

The opening marks the jewelry retailer’s first location in the Midwest.

Foundrae United in Love Campaign
CollectionsApr 16, 2025
Foundrae’s First Commitment Jewelry Collection Unites Through Love

The “United in Love” collection offers tangible mementos of hearts entwined with traditional and non-traditional commitment heirlooms.

Robert and Rose-Marie Goodman outside Robert Goodman Jewelers
IndependentsApr 16, 2025
Indiana Jeweler to Host Black Jewelry Designer Pop-Up

Robert Goodman Jewelers will hold a “Black Jewelry Designers and Makers” event on April 27.

Womens Jewelry Association WJA logo
MajorsApr 16, 2025
WJA Announces Board Members, New Chicago Chapter President

The announcements follow a tumultuous start to 2025 for WJA, which saw a wave of resignations following controversial statements about DEI.

Stock image of shipping containers
EditorsApr 15, 2025
Tariffs: What We Know Right Now

Editor-in-Chief Michelle Graff answers questions about how the new taxes levied on countries like India and China will impact the industry.

Botswana Minster of Minerals and Energy Bogolo Joy Kenewendo
EditorsApr 15, 2025
Q&A: Bogolo Joy Kenewendo on Making Deals, Marketing Diamonds

Kenewendo, Botswana’s minster of minerals and energy, discusses closing the deal with De Beers and the work that was missed along the way.

The Golconda Blue
AuctionsApr 15, 2025
23-Carat ‘Golconda Blue’ Heads to Auction

The historic fancy vivid blue diamond set to headline Christie’s Geneva sale next month could sell for up to $50 million.

Screenshot from new Jon Hamm series on Apple TV+, Your Friends and Neighbors
CrimeApr 15, 2025
Jon Hamm Plays a Jewel Thief on Apple TV+

The “Mad Men” and “The Morning Show” star steals jewelry, art, and handbags from his wealthy neighbors in “Your Friends & Neighbors.”

Kalpesh Jhaveri
SourcingApr 15, 2025
Diamond Club West Coast Names 2025 Board

The organization has reelected Kalpesh Jhaveri as president.

Two Movado Connect 2.0 watches
FinancialsApr 14, 2025
Movado to Restate Years of Financials Due to ‘Misconduct’ in Dubai

An investigation found that the former managing director of Movado’s Dubai branch overstated and prematurely recorded sales.

Sauer Balance Earrings in Ma Campaign
CollectionsApr 14, 2025
Sauer Embraces Emptiness Through ‘Ma’ Collection

The collection pays tribute to the Japanese philosophy of Ma, studying balance, stillness, and the interplay between presence and absence.

Mari Lous Fine Jewelry
IndependentsApr 14, 2025
Illinois Jeweler Closing After 45 Years

Mari Lou’s Fine Jewelry in Orland Park, a suburb of Chicago, is closing its doors.

GIA logo
GradingApr 14, 2025
GIA Expands Overseas Services as Tariffs Kick In

GIA’s labs in Dubai and Hong Kong are now accepting larger diamonds in light of the “logistical challenges” presented by the new tariffs.

Van Cleef & Arpels Pearl and Diamond Earrings Similar to Princess Grace’s Wedding Earrings
AuctionsApr 11, 2025
Piece of the Week: A Replica of Princess Grace’s Wedding Earrings

These earrings by Van Cleef & Arpels, featuring the same design as a pair worn by Princess Grace, are up for auction at Woolley & Wallis.

My Next Question webinar graphic
Recorded WebinarsApr 11, 2025
Watch: Top Tips for Saving Time With AI

Two experts share how artificial intelligence tools can help retailers run a more efficient business.

Kentaro Nishimura
SourcingApr 11, 2025
Mikimoto Names New President, CEO for U.S. Division

Kentaro Nishimura, who has been with the pearl company since 1997, has been promoted to president and CEO of Mikimoto America.

America Telling Time: 150 Years of Bulova
WatchesApr 11, 2025
Bulova Documentary Now on Amazon Prime

“America Telling Time: 150 Years of Bulova” explores the storied history of the American watchmaker.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy