Chico’s FAS operates greater than 1,250 shops within the U.S. Picture by Ashim D’Silva by way of Unsplash
Attire retailer Chico’s FAS has entered right into a definitive settlement with Sycamore Companions to be acquired for practically $1 billion in an all-cash deal. The corporate will turn into privately held and its inventory will now not be listed on the New York Inventory Alternate.
Solomon Companions L.P. is appearing as monetary advisors to the agency and Paul, Weiss, Rifkind, Wharton & Garrison LLP is appearing as authorized advisor. Kirkland & Ellis LLP is working as authorized advisor for Sycamore Companions.
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Chico’s FAS operated 1,258 shops within the U.S. throughout 46 states, as of July 29, 2023, totaling roughly 3 million sq. toes, and offered merchandise by means of 58 worldwide franchise areas in Mexico, in addition to two franchise areas in home airports. The corporate additionally operates a 503,000-square-foot workplace campus in Fort Meyers, Fla., and a distribution middle spanning 550,000 sq. toes in Winder, Ga. The agency runs three separate manufacturers together with Chico’s, White Home Black Market and Soma, and has greater than 14,000 staff.
Deal particulars
Shareholders will obtain $7.6 per share in money, representing a 65 % premium on the inventory’s final shut on Sept. 27, 2023. The settlement features a 30-day “go-shop” interval wherein Chico’s FAS can solicit and contemplate different proposals. The transaction is anticipated to shut by 2024’s first quarter. Sycamore Companions first tried to amass the corporate in 2019, extending provides at $3.5 and $3 per share respectively, each of which have been unanimously rejected by the board of administrators.
New York-based Sycamore Companions is a non-public fairness agency that has roughly $10 billion in mixture dedicated capital, specializing in client, distribution and retail investments. Reportedly, the agency was occupied with buying Subway earlier this 12 months, which ended up going to Roark Capital for $9.6 billion.
