rue21 Acquired by Apax Partners, Shares Surge
Thursday morning, rue21 Inc. (NASDAQ: RUE) was acquired by private equity firm Apax Partners. Shares will be acquired for $42 each, making the value of the acquistion around 1.1 Billion. rue21 will take the next 40 days to seek a better acquisition deal and will need shareholder approval before closing with Apax.
For the 2013 fiscal year ended February 2, rue21 had sales of 902 million, an 18.6 percent growth year over year and net income has nearly doubled over the past three years.
With the acquisition news, rue21 released some preliminary Q1 results. Net sales rose 9 percent with same store sales rising 4.6 percent. EPS will be around $0.44 per share. The company did note that the quarter was tougher than expected and hopes to pick up sales growth in the second quarter.
Shares of rue21 rose 23 percent in the premarket to $42.08.
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