Online retailer of diamond jewellery Blue Nile has announced that it will once again become a public company.
This news comes five years after it reverted from a public company to a private one.
The move sees American jeweller Blue Nile combine with Mudrick Capital Acquisition Corporation, a publicly-traded special purpose acquisition company.
The transaction is expected to provide around $450 million (£368 million) of capital, including $50 million (£41 million) of new preferred equity provided by Mudrick Capital.
It also includes $80 million (£65 million) of committed PIPE capital from existing Blue Nile sponsors and Mudrick Capital.
“As the pioneer of and category leader in online fine jewellery, Blue Nile is well positioned to win as the go-to e-commerce destination in the space,” said Jason Mudrick, founder and chief investment officer of Mudrick Capital Management.
“With its market leadership, track record as an innovator, talented team, and omnichannel business model, along with its proven growth vectors, Blue Nile fully addresses Mudrick Capital Acquisition Corporation II’s investment criteria. We are excited to partner with Blue Nile as it continues to be a trailblazer in the space.”
Sean Kell, Blue Nile’s chief executive officer, said: “Our vision is to help our customers celebrate all of life’s joyful occasions, big and small.
“Over the past two and a half years we have successfully transformed and elevated Blue Nile as a thriving fine jewellery and lifestyle brand, and we are excited about the growth opportunities that lie ahead.
“We have only scratched the surface of an estimated $320 billion (£261 billion) global fine jewellery market that has been slow to move online and remains fragmented. As we look to execute our growth strategy, now is the right time to become a public company.”
David Humphrey, chairman of the board of directors of Blue Nile and a managing director at Bain Capital Private Equity, added: “We are pleased that the Mudrick team will invest in Blue Nile and help accelerate the Company’s next phase of e-commerce leadership in the fine jewellery category.
“We believe Blue Nile has a significant opportunity for future market expansion as a real innovator in a large category that offers the right mix of compelling jewellery coupled with an unmatched selection of GIA graded diamonds at unbeatable values.”
Spurce : professionaljeweller