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Signet Jewelers Ltd., the largest specialty jewelry retailer in the U.S. and the United Kingdom, has acquired Zale Corp., parent company of Zales fine jewelry stores, for $21 a share, or $1.46 billion. Signet now operates more than 3,600 stores in the U.S., U.K. and Canada.

(Signet Jewelers Ltd.)

AKRON, Ohio -- Signet Jewelers Limited, the largest specialty jewelry retailer in the U.S. and the United Kingdom, announced Thursday that it had completed its acquisition of fine jewelry retailer Zale Corp. for $21 per share, or $690 million, in a deal worth $1.46 billion.

Signet, whose U.S. operations are based in Akron, now operates more than 3,600 stores under the brands Kay Jewelers, Jared the Galleria of Jewelry, Zales and Piercing Pagoda in the U.S.; H.Samuel and Ernest Jones in the U.K.; and People's in Canada. The combined company would have sales of more than $6.2 billion.

"Having now closed the acquisition of the Zale Corporation, we have entered a new era of growth and transformation for our company and our people," Signet Chief Executive Mike Barnes said in a written statement. "I am truly excited to have the Zale team joining the Signet family and I, and our leadership team, look forward to building upon the strengths of the entire organization."

The $21-per-share price is a 41 percent premium over its closing price of $14.94 on Feb. 18., the last day of trading before the transaction was announced, and an 85-percent premium over Zale's average closing price for the prior 12 months.

A majority of Zale's shareholders approved the transaction at a special meeting on Thursday.

Signet is headquartered in Hamilton, Bermuda, but its U.S. stores are based in Akron. Besides its 1,400 U.S. stores, Signet is also the largest jewelry retailer in the U.K., where it operates about 500 H.Samuel and Ernest Jones stores.

Zale Corp., based in Irving, Texas, operates 1,680 stores in the U.S., Canada and Puerto Rico, including Zales Jewelers, Zales Outlet, Gordon's Jewelers, People's Jewellers and Mappins Jewellers in Canada, and Piercing Pagoda kiosks.

Zales has has four stores in Greater Cleveland, including locations in Richmond Town Square in Richmond Heights, Great Lakes Mall in Mentor, Midway Mall in Elyria, and Zales Outlet at Aurora Premium Outlets in Aurora.

The acquisition is expected to contribute in the high-single-digit percentages to Signet's earnings within the first fiscal year after the transaction closes, excluding one-time acquisition costs. Zale will continue to operate as a separate division under Signet.

Signet expects $100 million in synergy potential by the end of fiscal 2018, including $50 million in savings from product sourcing and purchasing; $30 million from repair services sales and profit growth; and $20 million from lower selling general and administrative costs.

"This transformational acquisition further diversifies our businesses and extends our international footprint, opening the door to greater growth and innovation across the enterprise," Barnes said when the acquisition was announced on Feb. 19.

"The addition of Zale to the Signet family is consistent with our long-term growth strategy and leverages our combined operating expertise to create better choices for our customers, new opportunities for our employees, and makes us a more attractive partner to our vendors. In addition, it allows us to better optimize our balance sheet, creating long-term value for our shareholders."

Signet also announced organizational changes to its strategic plan, called "Vision 2020," related to the acquisition.

Mark Light, president and chief executive of Sterling Jewelers, has been promoted to president and chief operating officer of Signet Jewelers Ltd.

Theo Killion, chief executive of Zale, will become president and chief executive of Zale, which includes Zales, Gordon's, Piercing Pagoda, People's and Mappins locations.

George Murray will become Signet's chief integration management officer.Steve Becker, senior vice president of human resources for Sterling, is now chief human resource officer for Signet Jewelers Ltd.

Signet said it has begun an executive search for a chief marketing and strategic officer and for a chief information officer.

Signet's shares closed at $108.37 on Thursday, up $3.70, or 3.5 percent from Wednesday's close.