Ascena Retail Group (ASNA), which owns Lane Bryant and Dressbarn and operates 3,900 stores in the US and Canada, is expanding its women’s apparel business with a deal to buy Ann Inc. (ANN), owner of the Ann Taylor and Loft brands and retail stores, for about US $ 2.16 billion. Now Ascena – whose chains are known more for their affordability – buys one of the best known upscale apparel brands for women seeking business attire and business-casual outfits.
Ascena will pay Ann stockholders US $ 37.34 in cash and 0.68 share of Ascena common stock for each Ann share. The deal has been approved by the boards of both companies and is expected to close in the second half of 2015.
Ascena CEO David Jaffe said, “The deal will generate significant cash flowfor Ascena and contribute to its earnings in the years after closing. The acquisition combines two highly complementary organizations and management teams and dramatically reinforces our leadership position in women’s specialty apparel retailing.”
Ascena estimates about US $ 150 million of savings over a three-year period in procurement, back-office functions, distribution and logistics. Ann has 1,030 stores in the US and Canada.
