Signet Chief Executive Officer Mike Barnes said in a press release that the acquisition "further diversifies our businesses and extends our international footprint" and opens the door for greater growth and innovation.
Signet owns discount jewelers Kay and Jared, which are famous (and often mocked) for their somewhat cheesy ads. Zale also runs stores selling jewelry that is more affordable to the masses. So neither company competes that directly with higher-end jewelers such as Tiffany(TIF) or Harry Winston.
But Signet and Zale do face some challenges from online jeweler Blue Nile(NILE). Shares of Blue Nile were up slightly in premarket trading.