J Crew Close To $2.8B Takeover
November 23, 2010 2:07 AM
J Crew (NYSE: JCG), the purveyor of preppy apparel, is close to agreeing to a $2.8 billion takeover by by TPG Capital and Leonard Green & Partners, according to sources with knowledge of the deal.
The deal values J Crew at $43.50 a share. An announcement could come as early as Tuesday when the company is expected to deliver its next quarterly profit update.
Under the terms of the deal, TPG would own 75 percent of the company and Leonard Green would own the remaining 25 percent, Reuters reported, citing the sources close to the deal.
J Crew will have the opportunity to pursue a better offer, known as a "go shop" provision, and there is already talk that a higher offer will emerge, though that rumor has not been reported by mainstream media sources.
TPG had been a former owner of J Crew, buying an 88 percent stake for about $500 million in 1997, Reuters reported.
