Ascena Retail Group, Inc. has entered into an asset purchase agreement with Premium Apparel LLC, to sell Ascena’s Ann Taylor, LOFT, Lane Bryant and Lou & Grey brands.
Premium Apparel, an affiliate of Sycamore Partners, will acquire the brand assets for a purchase price of US $ 540 million, on a cash-free and debt-free basis, subject to certain adjustments, and the assumption of certain liabilities.
Premium Apparel has committed to retaining a substantial portion of the retail stores and associates affiliated with these brands.
Gary Muto, CEO, Ascena Retail, said “We are pleased to announce an agreement with Sycamore Partners, an experienced and trusted leader in the retail sector. The commitment Sycamore has made to our people and business is a testament to the long-term growth potential of our brands.”
The transaction is expected to be completed in next 2 weeks.
As previously disclosed, FullBeauty Brands Operations, LLC has completed its acquisition of Catherines’ intellectual property assets and e-commerce business, and Justice Brand Holdings LLC, an entity formed by Bluestar Alliance LLC, has completed its acquisition of the intellectual property of Justice.
“Ann Taylor, LOFT, Lane Bryant and Lou & Grey are well-known brands, each with passionate associates and loyal customers. These brands have significant potential, and we are excited about the opportunity to partner with Ascena’s talented team to continue delivering new and relevant experiences for customers,” said Stefan Kaluzny, MD, Sycamore Partners.
Ascena Retail Group has been sourcing apparels from many top Indian apparel exporters since many years.
Sycamore Partners, New York is a private equity firm, which specialises in consumer, retail and distribution investments and partners with management teams to improve the operating profitability and strategic value of their business. It has approximately US $ 10 billion in assets under management.