Michael Hill has acquired Bevilles Jewellers in a $45 million dollar deal.
👉 Background: Michael Hill is a fine jewellery chain with over 300 stores across Australia, New Zealand, and Canada. It is mostly known for its mid-range gold and silver jewellery pieces… and some precious stones.
👉 What happened: Now, Michael Hill has acquired Bevilles Jewellers in a $45 million dollar deal, which means they’ve snagged Beville’s 26 Australian stores. And Bevilles? Well, they’re the jeweller with diamond rings mainly in the $500 - $3k range.
👉 What else: Often when a company acquires a competitor, there’a a risk of product cannibalisation. But Michael Hill wants both companies to go after different customers segments.
💡 Product cannibalisation is when a company launches a new product that displaces one of their older products:
💡Michael Hill wants to tap into more upmarket customers for its Michael Hill brand - so it is using the Beville's deal to help service a greater share of the Aussie jewellery market.
💡And because that’s a different market segment, it looks like Michael Hill might be safe from.... cannibalism.
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