Blue Nile has long taken advantage of those looking for quick and convenient ways to shop for diamonds online. However, recent numbers have shown that consumers might be going back to more traditional face-to-face shopping methods. With Blue Nile’s third quarter sales dropping 4.3 per cent, they’ve recently announced that Bain Capital Private Equity and Bow Sweet LLC will acquire the company.
The all-cash deal is said to be valued at $500 million, and the investors will acquire 100 per cent of the shares in Blue Nile common stock.
“Since its inception, Blue Nile’s guiding principle has been to provide value to its customers, suppliers and shareholders, and this transaction provides tremendous value to all,” Harvey Kanter, Blue Nile chairman, CEO and president, said in a statement. “Blue Nile will continue its innovative drive that has disrupted the diamond industry and made us the smartest, easiest, and most pressure-free way for consumers to buy a diamond.”
Ryan Cotton, managing director at Bain Capital Private Equity, added, “This is an opportunity to acquire a true disruptor in a fundamentally attractive and growing segment of the diamond industry…. We believe the company will continue to grow as educated consumers continue to seek easy and convenient shopping experiences that deliver transparent pricing and enhanced value.”
Experts in the industry have commented and shared that the acquisition is a numbers game; it doesn’t necessarily take a lot of knowledge to keep an online retailer like Blue Nile running. However, experts have also stated that ultimately, people are becoming more educated and want the comfort of dealing with individuals in a service-oriented industry, as opposed to looking online for their jewellery, gemstones and diamonds.
