Michael Hill International has acquired Australian jewelry retail rival Bevilles in a strategic $45.1 million deal.
Bevilles was founded in 1934 and has remained family-owned for three generations, operating 26 stores across Victoria, NSW, and South Australia. The business was founded by Leo and Raie Beville, who owned a store in Melbourne’s Bourke Street.
Michael Hill CEO Daniel Bracken said that Beville’s strength in gold and silver products would complement his company’s reputation for diamond jewelry.
“It has a completely different product proposition to the Michael Hill business, and is predominantly focused on gold, silver, and watches, whereas Michael Hill is predominantly diamonds,” he told The Australian Financial Review.
“The majority of Beville’s pricing sits below $500. We’ve stepped away from the mid-market, but we see that there’s still a big opportunity at that end of the market.”
The company is planning to open more than 80 new Bevilles stores by 2028, including expansion in New Zealand and Canada where Michael Hill already operates. Michael Hill operates 148 in Australia, along with 47 in New Zealand and 86 in Canada.
“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,” added Bracken.
“I’m looking forward to our two teams working together to deliver the group strategy.”
Beville’s employees will reportedly be offered new employment contracts WithMichael Hill. The transaction is expected to be completed in the current quarter.
Michael Hill chair Robert Fyfe said in the immediate aftermath of the acquisition, expansion would be the top priority.
“It ticks so many boxes, especially in the current economic environment as customers seek value for money,” he said.
“The Bevilles store network is under-penetrated and ready for growth, and Michael Hill will partner with Bevilles to provide expertise to grow the store portfolio, and unlock synergies.”
The deal is subject to approval by the Australian Competition and Consumer Commission and the Fair Work Commission.
In 2017, Indian jewelry company Tara Jewels acquired a 49 per cent stake in Bevillesfour years after forming a strategic alliance between the two companies.
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