Sycamore Buys Talbots
It was revealed on Thursday that clothing brand Talbots (NYSE: TLB) is about to be acquired by an affiliate of Sycamore Partners. Both of the companies came forward with the news.
Sycamore Partners will acquire all of Talbots' outstanding common stock for $2.75. That will value TLB at roughly $369 million. Hat purchase price represents a 113% premium on the May 30 closing price.
Talbots CEO Trudy Sullivan said, "We are pleased with the value this transaction delivers to our stockholders and believe that this is a positive development for all of our stakeholders. Sycamore Partners is a strong investor with substantial resources and expertise, and we look forward to operating as a private company under their ownership.”
Meanwhile, Sycamore Managing Director Stefan Kaluzny said, "We believe in the Talbots brand and its more than 8,000 Associates. We look forward to a long and successful partnership with Talbots serving its many loyal customers.”
An affiliate for Sycamore Partners will now enter a tender offer for all Talbots outstanding shares. That offer will have to satisfy minimum tender conditions and get through a bunch of red tape before the deal is concluded, though it is expected to go through relatively smoothly.
Follow me @BCallwood.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.