Rideau Acquires Birks Corporate Sales Division for C$5.625M

Birks Group Inc. (NYSE MKT:

) and Rideau Recognition Solutions Inc. announce that they have executed a definitive asset purchase agreement whereby Birks Group sold its Corporate Sales Division, also known as "Birks Business", to Rideau for CAD $5.625 million (or approximately USD $4.3 million). The Corporate Sales Division services business customers by providing them with unique items for recognition programs, service awards and business gifts. Under the terms of the agreement, Rideau acquired the existing inventory of the Birks Corporate Sales Division and will continue the employment of the existing employees of the Corporate Sales Division. In addition, as part of the agreement, Birks will supply Rideau with Birks-branded jewelry and watches and Birks will receive ongoing royalty payments from Rideau related to the license of the Birks Business Brand and future sales of Birks-branded products. "The sale of our Corporate Sales Division 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 Chief Executive Officer of Birks Group. "By unlocking the value of our corporate sales operations through this agreement