VC firm Sycamore Partners will purchase Chico’s FAS for $1 billion in a deal that will take the apparel retailer private. Shareholders will receive $7.60 per share in cash, representing a 65% premium to the company’s closing stock price on Sept. 27, 2023, the last trading day prior to the transaction.
Chico’s operates more than 1,200 stores in the U.S. and sells internationally via 58 franchise locations in Mexico. The acquisition is expected to be finalized in Q1 2024, subject to customary closing conditions and approvals, and the agreement includes a 30-day “go shop” period that will allow Chico’s to solicit alternative acquisition proposals through Oct. 27, 2023.
“Through this investment, we are gaining additional expertise, financial resources and strategic flexibility to fuel the growth of our company and three powerful brands: Chico’s, White House Black Market and Soma,” said Molly Langenstein, CEO and President of Chico’s FAS in a statement. “Sycamore Partners has an outstanding record in the retail industry in partnering with management teams to help businesses reach even greater levels of success.”
Sycamore Partners has been actively growing its retail portfolio over the past few years. Most recently, Sycamore created KnitWell Group, a new holding company for the Ann Taylor, Talbots and Loft brands, which it had purchased from Ascena Retail Group in November 2020 for $540 million.