Chico’s FAS has agreed to be acquired by the retail-focused private equity firm, Sycamore Partners in a deal valued at $1bn.
Once the transaction is completed, Chico’s will become a privately held company and will no longer be listed on the New York Stock Exchange.
Under the terms of the agreement, Chico’s shareholders will receive $7.60 per share in cash. The per share purchase price represents a 65 per cent premium to the company’s closing stock price on 27 September 2023 (the last trading day before the announcement of the transaction).
The deal is expected to close by the end of the first quarter of 2024. It includes a 30-day “go-shop” period (expiring on 27 October) during which time the retailer can solicit other bids.
As of 29 July, Chico’s operated 1,258 stores in the US and sold merchandise through 58 international franchise locations in Mexico and through two domestic franchise locations in airports. The company operates three brands: Chico’s, Soma and White House Black Market.
