Chico’s FAS to be acquired by Sycamore Partners
Chico’s FAS, Inc. announced on Thursday that it has entered into a definitive agreement to be acquired by private equity firm Sycamore Partners.
Under the terms of the agreement, Chico’s FAS shareholders will receive $7.60 per share in cash. This per-share purchase price represents a 65% premium over the company’s closing stock price on September 27, 2023, which marked the last trading day prior to the transaction announcement.
The deal will take Chico’s FAS from the public market to private ownership, ushering in a new era for the Florida-based fashion company founded in 1983. Upon the completion of the transaction, Chico’s FAS common stock will cease trading on the New York Stock Exchange.
The company currently operates 1,258 stores in the U.S. and sells merchandise through 58 international franchise locations in Mexico and through two domestic franchise locations in airports.
“Through this investment, we are gaining additional expertise, financial resources and strategic flexibility to fuel the growth of our company and three powerful brands: Chico’s, White House Black Market and Soma,” said Molly Langenstein, Chico’s FAS chief executive officer and president.
“Sycamore Partners has an outstanding record in the retail industry in partnering with management teams to help businesses reach even greater levels of success. They share our commitment to providing solutions, building communities and creating memorable experiences to bring women confidence and joy. We look forward to working with the Sycamore Partners team to unlock Chico’s FAS’s full potential.”
The transaction, unanimously approved by the Chico’s FAS Board of Directors, is expected to be completed by the end of the first calendar quarter of 2024, pending customary closing conditions and approvals.
“We are pleased to have reached this agreement with Chico’s FAS and its board of directors. We have long admired the Ccmpany’s three iconic brands, including Chico’s, White House Black Market and Soma,” added Stefan Kaluzny, managing director of Sycamore Partners.
“We look forward to partnering with the company’s more than 14,000 talented associates to grow these brands by continuing to deliver excellent products and service to their devoted customers.”
