Family-run Bevilles cashes out for $45 million as Michael Hill takes ownership of jewellery retailer

The Bevilles jewellery chain will fold into the Michael Hill retail group in a deal worth $45 million, the ASX-listed firm has announced, ending nearly 90 years and three generations of ownership by the Beville family.

In a statement provided to shareholders on Wednesday, Michael Hill, a jewellery retailer operating 281 stores across Australia, New Zealand, and Canada, said the deal to acquire Bevilles will boost its retail footprint and assist the Michael Hill brand’s upmarket shift.

Michael Hill is moving into the “premium” market segment and focusing on diamond jewellery, the company said, presenting an opportunity for Bevilles and its 26 existing retail stores to meet more value-minded consumers.

The Bevilles acquisition will see “minimal cannibalisation” of Michael Hill’s existing customer base, the company added.

“As Michael Hill continues on its brand elevation journey, this transaction provides the perfect complementary brand to expand our addressable market,” said Robert Fyfe, Michael Hill chair.

“It ticks so many boxes especially in the current economic environment as customers seek out value for money.”

In Bevilles, Michael Hill will acquire a business expected to generate up to $65 million in sales and as much as $8.5 million in EBITDA across the 2023 financial year.

The deal is subject to a sign-off by the Australian Competition and Consumer Commission and the Fair Work Commission.

Michael Hill’s planned acquisition marks the end of a multi-generation journey for the Bevilles brand.

It was founded in 1934 by husband-and-wife duo Leo and Raie Beville, who operated a single store in Melbourne’s Bourke Street.

Originally a retailer of homewares like crystal and chandeliers, jewellery and diamonds entered its range in the 1950s and became a mainstay for the brand in the following years.

Company leadership was handed to their son, Keith Beville, who, alongside his wife Deirdre, opened the brand’s second location in Melbourne’s Knox City in the 1970s.

Third-generation leader Michelle Beville took the top job in 2009 and oversaw the company’s expansion to 27 stores by 2014.

However, the company fell into administration that year, amid a tough environment for retailers and what administrators cited as hard bargaining from the chain’s landlords.

The Beville family successfully reacquired the company through a deed of company arrangement, allowing Michelle Beville to regain the position and steer the company through a refresh of its retail outlets.

Although her family ties will formally come to an end, Michelle Beville will retain an ambassadorial position for two years after the Michael Hill deal.

SmartCompany has contacted Bevilles for comment.