Finlay to Acquire Luxury Chain From Zale Corp.

NEW YORK CITY-Locally-based Finlay Enterprises Inc. has executed an asset purchase agreement with Zale Corp. and its subsidiaries for the acquisition of the assets and business of Zale’s Bailey Banks & Biddle division. The retailer of fine jewelry will acquire the chain of 70 stand-alone retail stores, which currently focuses on the luxury market, in a deal expected to close near the end of October, according to Finlay executives on a conference call Thursday.

The purchase price is $200 million, plus an inventory adjustment at the time of closing and the assumption of certain liabilities. The company expects to finance the transaction through a new $550-million five-year revolving credit facility provided by GE Corporate Lending, which would replace its existing facility. GE Capital Markets Inc. will act as the sole lead arranger for the financing.

“The acquisition of Bailey Banks & Biddle represents a landmark event for our company,” noted Arthur E. Reiner, chairman and CEO of Finlay. “It fits extremely well into our strategy to grow and further diversify our business through acquisitions, and almost triples the number of stand-alone jewelry stores we operate.”