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.