The chain has doubled in size since its acquisition last year
Diamonds Direct, the Charlotte, N.C.–based jewelry chain, has acquired all the retail assets of Dallas-based megastore Diamond Doctor.
Terms of the deal were not disclosed. As a result of the acquisition, the name Diamond Doctor—named for founder David Blank’s late physician father—will cease to exist.
This marks Diamonds Direct’s 10th store; the chain has doubled in size since it was acquired last year by investment fund Blackstone. It recently opened a store in San Antonio, and last year it took over the space formerly occupied by Samuel Gordon Jewelers in Oklahoma City.
“The timing [for the acquisition] was perfect,” says Diamonds Direct president Itay Berger. “We were looking at Dallas, but we couldn’t figure out the size, the market, the real estate. It was always on our radar because we view Texas as a wonderful growth opportunity.”
Berger says he expects the chain will keep adding new locations.
“I view us as continuing to grow, in a smart, healthy, not too leveraged way, controlling our own inventory and having fun on the floor,” he says.
He says he met Blank through “a mutual friend.” Both businesses have similar models—involving radio advertising, hooking up with local sports teams (Diamond Doctor is the official jeweler of the Dallas Cowboys), price comparisons, and stocking name brands. According to a 2014 article in D magazine, Diamond Doctor’s retail and wholesale divisions do $40 million in annual revenue.
“There are a lot of similarities between the two business, and we saw a great platform and a great business, but we are a big believer it can grow from here and be fruitful,” he says.
Blank was not available for an interview but told Dallas Morning News that he considered Diamonds Direct “a perfect fit.”
“I have been at this for nearly 13 years, and I’ve been approached by hundreds of companies in the past wanting to buy my business,” he told the newspaper. “And candidly, it was never ever for sale. But Diamonds Direct is the most dynamic jewelry company in the country at the moment. They’re the darlings of the industry.”
Amit Berger, Itay’s brother and the company’s senior vice president, will oversee the Dallas operation. However, Itay Berger says Blank will continue to work at the store for at least two years.
“We really value the name that he has built, his connections, the charitable work that he did,” Berger says. “He is going to guide us in the market, he is going to be serving daily his customer, and he is definitely staying on board not only to help us with the transition but also to continue to serve the customer.”
After that, he will “stay with the organization,” Berger says.
“Blank is a mensch,” Berger says, “a man who, when he says something, you know he means it.”