Michael Hill has bought out Australian family-owned retailer Bevilles for $45.1 million in a strategic acquisition.

According to Michael Hill, the majority of Bevilles’ sales are generated from gold and silver jewellery categories. Meanwhile, Michael Hill has positioned itself as a diamond jewellery destination.

Michael Hill chair Robert Fyfe said the acquisition would expand the company's addressable market. 

“It ticks so many boxes, especially in the current economic environment as customers seek out value for money. The Bevilles store network is under-penetrated and ready for growth, and the Michael Hill team will partner with Bevilles to provide expertise to grow the store portfolio, and unlock synergies.”

The company is planning to open 80-100 Bevilles stores by FY28, including further expansion in New Zealand and Canada where Michael Hill already operates. This could also include coverting existing Michael Hill stores into Bevilles locations where the demographic aligns. 

Bevilles currently operates 26 Australian stores across Victoria, New South Wales and South Australia. Michael Hill operates 148 across all Australian states and territories, along with 47 in New Zealand and 86 in Canada. 

Michael Hill CEO Daniel Bracken said national expansion is a key priority for the Bevilles brand. 

“We see meaningful growth potential and EBITDA enhancement opportunities embedded within the business, which we will unlock in the short to medium term, and the transaction is expected to be immediately EPS accretive,” Bracken said. “Expanding the store network in Australia represents an extremely exciting opportunity for the group, as the Michael Hill brand continues its journey to elevate into a more premium positioning.

“I’m looking forward to our two teams working together to deliver the group strategy.”

Within the acquisition agreement, a two-year ambassadorial arrangement has been agreed with Bevilles’ CEO Michelle Stanton. Bevilles employees will also be offered new employment contracts with Michael Hill. The transaction is expected to be complete in the current quarter.

Bevilles is a family-owned jewellery and watch retailer. The brand saw a material restructure in 2014, and has since opened nine stores over the last five years. 88% of sales over the last twelve months are reportedly coming from 1.1 million loyalty members.

Bevilles is expected to generate $60 – 65 million in sales and adjusted underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $7.5 – 8.5 million for FY23.

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