Chico’s FAS will be taken private by private equity firm Sycamore Partners for US $ 938.1 million in an all-cash deal, the apparel retailer said.
According to a press release, Chico’s board has authorised the purchase, which is anticipated to finalise at the end of Q1 2024. However, it must still pass shareholder approval and antitrust review. The contract stipulates a 30-day “go-shop” window, during which Chico’s FAS may seek out and evaluate alternate acquisition options until 27th October.
The store, which owns the namesake Chico’s, White House Black Market, and the intimates line Soma, refused Sycamore’s repeated attempts to acquire it four years ago.
Several retail businesses and brands, including Belk, Staples, Talbots, and The Limited, are represented in the Sycamore portfolio. In a statement, Sycamore Managing Director Stefan Kaluzny said the company has long appreciated Chico’s FAS and its three brands and is “pleased to have reached this agreement with Chico’s FAS and its Board of Directors.”
In a statement of her own, Molly Langenstein, CEO of Chico’s FAS, lauded Sycamore for its “outstanding record in the retail industry in partnering with management teams to help businesses reach even greater levels of success.”
