Michael Hill seals US deal

Michael Hill International has paid about US$5.5 million ($8.1 million) for 17 stores in Illinois and Missouri.

It said yesterday that all conditions for the purchase from Whitehall Jeweler had been satisfied and it had taken possession of the stores.

The purchase had been funded from existing bank facilities and cash on hand. Most of the price had been paid, but with a further amount to be paid after a stocktake at the various stores.

Chairman Michael Hill earlier said the company viewed the deal as a strategic acquisition to test its retail model in the highly competitive US market, even though it was a challenging time for the economy.

The stores are not expected to be profitable for several years.