Blog Coverage Shareholders of Online Jeweler Blue Nile Approve the Takeover by Bain Capital

Upcoming AWS Coverage on Tiffany & Co.

LONDON, UK / ACCESSWIRE / February 6, 2017 / Active Wall St. blog coverage looks at the headline from Blue Nile, Inc. (NYSE: NILE). During a special meeting of the shareholders of Blue Nile held on February 02, 2017, a vote was taken to consider the takeover of the Company by funds managed by private equity firm – Bain Capital Private Equity and Bow Street LLC. Register with us now for your free membership and blog access at:

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One of Blue Nile’s competitors within the Jewelry Stores space, Tiffany & Co. (NYSE: TIF), is estimated to report earnings on March 17, 2017. AWS will be initiating a research report on Tiffany & Co. following the release of its next earnings results.

Today, AWS is promoting its blog coverage on NILE; touching on TIF. Get all of our free blog coverage and more by clicking on the links below:

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Blue Nile’s shareholders approved the proposal with an overwhelming majority. In a filing with the Securities and Exchange Commission, it was disclosed that approximately 8.8 million votes agreeing to the proposal were received against around 571,000 votes disagreeing to the proposal.

The transaction is now expected to close before end of February 2017 after which Blue Nile will become a private Company. The deal will be final only after it completes the remaining customary closing conditions.

The Acquirers

Bain Capital was founded in 1984 and is the world’s leading multi-asset alternative investment firms with approximately $75 billion in assets under management. Bain has a collaborative approach when making an investment and helps companies to grow using strategic and analytic resources at its disposal. Bain has tremendous experience in sectors like consumer/retail, financial and business services, healthcare, industrials, and technology, media and telecommunications.

Bow Street is a New York based investment advisory firm that partners with institutional investors and others to make strategic investments in public equity, fixed income, and hedging markets across the globe.

The Background

In November 2016, Blue Nile had announced that it had agreed to be bought over by an Investor Group which included funds managed by Bain Capital Private Equity and Bow Street LLC. As per the terms of the all-cash deal, the investor group would acquire all the outstanding shares of Blue Nile for approximately $500 million. Blue Nile’s shareholder would receive $40.75 cash for each share they held in the Company. The offer price is at a 33.9% premium of the closing price of $30.44 on November 04, 2016, the last trading day before the deal was announced. On completion of the deal, the Company would become privately owned and continue to be headquartered in Seattle, Washington. There were no other financial conditions to the deal.

The deal had been announced parallel to the Company’s results for the third quarter of 2016 ending as on October 02, 2016. The Company recorded GAAP net revenue of $105.1 million and a GAAP net income of $1.3 million for the third quarter.

Blue Nile was listed in 2004 and has been a leading online jewelery destination for independently graded diamonds and fine jewelery especially engagement rings, wedding rings etc. It even opened display rooms called “webrooms” at various malls where customers could view as many as over 400 rings and fine jewelery before placing an order. The first store was opened in 2015 at Long Island, New York, and the Company recently added a fifth store in November 2016 at Bellevue Square, Bellevue, Washington. However, the Company has been struggling with flat sales and decreasing profits in recent quarters as jewelery prices have gone down. Increased competition from newer online jewelery stores as well as established jewelers starting their own online sites has added to the Company’s woes.

Before accepting Bain’s offer, Blue Nile had been on a lookout for a suitable partner since 2015. The Company had sent out feelers to several potential buyers, but none of them fructified.

Stock Performance

At the close of trading on Friday, February 03, 2017, Blue Nile’s shares finished at $40.74, marginally falling 0.01%, just a cent shy of the offer price of $40.75. A total volume of 222.28 thousand shares have exchanged hands, which was higher than the 3-month average volume of 195.87 thousand shares. Blue Nile’s stock price advanced 19.63% in the last three months, 39.41% in the past six months, and 32.26% in the previous twelve months. Shares of the company have a PE ratio of 49.92 and have a market capital of $476.60 million based on its last closing price.

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