Michael Hill buys Australian jeweller Bevilles

New Zealand jeweller Michael Hill International has acquired Australian jewellery and watch retailer Bevilles for NZ$49.1 million in an all-cash deal.

Bevilles sells premium diamond, gold and silver jewellery along with other accessories and watches. It operates 26 stores across Victoria, NSW and SA – and it has an online business, Watches Galore.

Daniel Bracken, CEO and MD at Michael Hill, described the acquisition as a “highly complementary strategic fit” for the business.

“Bevilles is a highly profitable business, with clearly defined market positioning and a talented and highly capable team.

“Expanding the store network in Australia represents an opportunity for the group, as the Micahel Hill brand continues its journey to elevate into a more premium positioning.”

He added the business sees “meaningful growth potential” in Bevilles aligning with the group strategy.

The acquisition, which is an upfront cash consideration, will be funded from the existing cash reserves of Michael Hill and its undrawn debt facility.

Bevilles’ CEO Michelle Stanton will be granted a two-year ambassadorial arrangement for her ongoing contribution to the business while the company’s employees will receive new employment contracts from Michael Hill.

In this financial year, Bevilles is expected to generate $65 to $70 million in sales.

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