Birks Group has sold its corporate sales division to Rideau, which specializes in recognition programs, for some $4.3 million.
The deal means that Montreal-based Rideau has acquired the division’s exiting inventory and will service its clients. Birks will also supply Rideau with Birks-branded jewelry and watches and receive royalties from Rideau related to the Birks business brand and future sales of its products.
The sale “is part of our long-term corporate strategy to focus our efforts and resources on our core objectives to develop and grow the Birks product and retail brands,” said Jean-Christophe Bédos, president and CEO of Birks Group, in a statement. “We will reinvest the funds to continue to strengthen our retail distribution.”
In the statement, Rideau CEO Peter W. Hart said the acquisition will “combine the power of the Birks brand with the strength of Rideau’s technology, distribution capabilities, and leadership in the recognition market.”
In its last fiscal year, Birks reported an $8.6 million loss, despite its comp sales growing 16 percent.