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Akron, OH—Signet Jewelers Limited (NYSE: SIG), is adding another banner to its stable. The retailer, which owns Kay, Zales, and Jared The Galleria of Jewelry, among others, on October 12 announced plans to acquire Charlotte, NC-based Diamonds Direct USA Inc. for $490 million in an all-cash transaction. The deal is currently expected to close in the fourth quarter of fiscal 2022, subject to customary closing conditions and regulatory approval. Image: The Diamonds Direct store in Raleigh, NC.

Like Signet’s Jared division, Diamonds Direct is an off-mall destination jeweler, with 22 stores in 13 states, primarily in the South and Midwest. Its highly productive, efficient operating model has demonstrated growth and profitability that will be immediately accretive to Signet post-closing, said a statement from Signet. Diamonds Direct's strong value proposition, extensive bridal offering and customer-centric, high-touch shopping experience is a destination for younger, luxury-oriented bridal shoppers. Signet plans to drive operating synergies by leveraging scale in purchasing, targeted marketing, Connected Commerce and jewelry services. The Diamonds Direct current leadership team, helmed by president Itay Berger, will remain in place, with Berger reporting to Signet CEO Virginia “Gina” Drosos.

"The accretive addition of Diamonds Direct to our portfolio will further drive shareholder value with its distinct bridal-focused shopping experience and add a new entry point as we build lifetime customer relationships and strive to reach our $9 billion revenue goal over time," said Drosos. "The Signet team continues to deliver strong business performance as part of our Inspiring Brilliance growth strategy. We are executing on our strategic priorities and investing in our business, while also returning cash to shareholders through our previously announced reinstated dividend and share buy-back program." 

"I am excited about Diamonds Direct joining the Signet family as we share a passion for company culture that prioritizes our team members, our customers and our community," said Berger. "We are thrilled to continue to grow our business, leveraging Signet's strengths and strategic capabilities to bring even more innovation and value to our signature shopping experience." 

Signet shares rose 1.99% on the news, closing at $83.24 per share on Tuesday. The jeweler is raising its fiscal 2022 guidance, citing results to date that have exceeded expectations.

Related: Investors Observer Ranks Signet Highest In Luxury Goods Industry

"Customers are showing positive response to our new product launches, and the reduction in government stimulus and customer shift to spending on entertainment and travel are having less impact than we previously anticipated," said Joan Hilson, chief financial and strategy officer. "While there remain factors beyond our control, our strengthened supply chain and vendor partnerships gave us the ability to plan earlier receipt of holiday product, and we currently do not expect any material supply chain disruptions. Signet uses air freight for the transit of the vast majority of our merchandise, thus avoiding current ocean freight congestion."