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The Zale Corp. to purchase Piercing Pagoda Inc. for 0.70 times revenue
- Article from:
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Weekly Corporate Growth Report
- Article date:
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August 21, 2000
- Author:
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Copyright informationCopyright NVST.com, Inc. Aug 21, 2000. Provided by ProQuest LLC. (Hide copyright information)
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The Deal: The Texas based jewelry retailer, Zale Corp., has agreed to purchase Piercing Pagoda Inc., the Pensylvania based jewelry kiosk company, for $197.5 million in cash. The deal is keeping with Zale's strategy of gaining opening-- price-point customers while continuing to focus on its mall based operations.
Discussion: Piercing Pagoda Inc. operates about 950 stores, mainly mall kiosks, in the United States and Puerto Rico. The company offers inexpensive 14-karat and 10-karat gold earrings, charms, chains, rings and bracelets, as well as some silver and gemstone jewelry. Piercing Pagoda stores will pierce ears for free with the purchase of earrings. The stores operate mostly under the ...
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