【Montreal, Ca】BIRKS GROUP COMPLETES THE ACQUISITION OF THE WATCH AND JEWELLERY BUSINESS OF EUROPEAN BOUTIQUE AND RELATED DEBT FINANCING AMENDMENTS

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Editor’s Note

This announcement confirms the completion of Birks Group’s acquisition of European Boutique’s luxury watch and jewellery business, a strategic move first announced in June 2025.

Acquisition Completed

MONTREAL, July 8, 2025 /CNW/ – Birks Group Inc. (the “Company”, “Birks Group” or “we”) (NYSE American LLC: BGI) is pleased to announce that, further to its June 9, 2025 announcement, it has completed the acquisition (the “Acquisition”) of the luxury watch and jewellery business of European Boutique (“European”) from its founders, the Sutkiewicz family, for a purchase price of $9,000,000, subject to customary adjustments.

About European Boutique

Headquartered in Toronto, European operates stores at the Yorkdale, Square One, Toronto Eaton Center and Sherway Garden malls, consisting of four European Boutique multi-brand luxury watch and jewellery stores, three mono-brand boutiques for luxury brands OMEGA, Breitling, and Montblanc, as well as integrated storefronts for luxury brands such as TAG Heuer, GUCCI, and Diamonds Direct. In addition to its brick-and-mortar stores, European operates a national e-commerce website at European.ca which offers a wide selection of watches and jewellery across Canada. As a part of the Acquisition, Birks Group has also entered into a licensing agreement to operate the Canadian brand Diamonds Direct® (DiamondsDirect.ca).

CEO Statement

Jean-Christophe Bédos, President and CEO of Birks Group, commented:

“We are delighted to complete the acquisition of European. The European stores have prime locations in important malls in the Greater Toronto Area and carry high-end luxury brands which will complement Birks Group’s offering. We now enter into a period of transition where we will be liaising closely with the European team and we look forward to welcoming Jordan Sutkiewicz, Michelle Ceresney and European’s employees to the Birks family.”
Former Owners’ Statement

Eric Sutkiewicz, Lynn Sutkiewicz, Jordan Sutkiewicz and Michelle Ceresney, the former owners of European, commented:

“After nearly 50 wonderful years of serving our loyal clients, we are proud to have sold our family business to Birks Group, a well-respected and trusted pan-Canadian retailer of fine jewellery, watches and gifts that shares the same commitment to quality and customer service as European. We would like to thank all of our team, colleagues, partners and friends at European for their dedication and support. We wish them much success under the leadership of Birks Group.”
Financing Details

In connection with the Acquisition and as previously announced, Birks Group also obtained an additional term loan of $13.5 million (the “Incremental Loan”) with SLR Credit Solutions (“SLR”), one of the Company’s current senior lenders. The Incremental Loan bears interest at the same rate as our current $12.5 million term loan with SLR which is CORRA plus (i) a CORRA adjustment of 0.32% and (ii) 7.75%, and it will be repayable, in full, on December 24, 2026. A portion of the proceeds from the Incremental Loan were used by the Company to fund the purchase price for the Acquisition and the balance of the proceeds will be used to fund ordinary course working capital. The Company also entered into a loan agreement for $3.75 million of additional indebtedness (the “Loan Agreement”) with Mangrove Holding S.A., one of the Company’s controlling shareholders. The Loan Agreement bears annual interest at 15% and it will be repayable, in full, on December 24, 2026. The proceeds from the Loan Agreement will be used to fund ordinary course working capital.

Lender Statement

Rebecca Tarby, Senior Managing Director of SLR, commented:

“Birks Group and SLR have enjoyed a long-term business relationship for over 15 years, and we are pleased to support Birks Group’s continued growth and success.”

The Company continues to be actively engaged in identifying alternative transactions to continue pursuing its strategic goals including raising additional funds through public or private equity, debt financing, and the completion of strategic acquisitions.

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⏰ Published on: July 08, 2025