J. Crew Group Inc. agreed to be acquired by TPG Capital and Leonard Green & Partners in a transaction valued at about $3 billion, giving the buyout firms the New York-based retailer’s namesake and Madewell brands.
The price is $43.50 a share, 23 percent higher than the 20- day average stock price before today. That compares with the 17 percent average premium for U.S. private-equity takeovers of apparel makers, according to data compiled by Bloomberg.
TPG, a former owner of the retailer, and Leonard Green will work with Chief Executive Officer Millard “Mickey” Drexler, they said today in a statement. Drexler may be looking to go private as J. Crew adapts to changing consumers’ tastes and deals with inventory that isn’t selling well, said Nathan Brown, an analyst at J. Crew shareholder Waddell & Reed Financial Inc.
Full story: J. Crew Agrees to $3 Billion Buyout Offer by TPG