Benzinga | Oct 12, 2021 08:11AM EDT

Signet Jewelers To Acquire Diamonds Direct For $490M; Raises Q3, FY22 Outlook

* Signet Jewelers Ltd (NYSE:SIG) has agreed to acquire Diamonds Direct USA Inc, an off-mall, destination jeweler in the U.S., for $490 million in an all-cash transaction.

* Signet expects the acquisition to be immediately accretive to earnings post-closing and expand its growth potential in bridal offerings.

* Signet held $1.6 billion in cash and equivalents as of July 31, 2021. It expects the deal to close in the fourth quarter of Fiscal 2022.

* Outlook: Signet has also raised Q3 sales guidance to $1.42 billion - $1.45 billion (prior $1.26 billion - $1.31 billion) versus the consensus of $1.28 billion.

* It expects Q3 same-store sales to rise 10% - 12% (prior view ((3%) - 1%).

* For the fiscal year 2022, Signet expects total revenue of $7.04 billion - $7.19 billion (prior view $6.80 billion - $6.95 billion) versus the consensus of $6.96 billion.

* It expects FY22 same store sales growth of 35% - 38% (previous view 30% - 33%).

* Price Action: SIG shares are trading higher by 3.57% at $84.97 in premarket on the last check Tuesday.