FORT MYERS, Fla. - Chico's FAS (NYSE:CHS), Inc., a Florida-based fashion retailer, has been acquired by private equity firm Sycamore Partners in an all-cash transaction valued at approximately $1B, or $7.60 per share. The deal, which was completed today, results in the delisting of Chico's FAS shares from the New York Stock Exchange.
Chico's FAS, known for its women's clothing and accessories brands Chico's, White House Black Market, and Soma, has been a staple in the fashion retail industry since its inception in 1983. The acquisition by Sycamore Partners, a firm with a focus on retail and consumer investments, marks a significant transition for the retailer, which operates 1,256 stores across the United States and has a presence in Mexico through international franchise locations.
Molly Langenstein, CEO and President of Chico's FAS, expressed enthusiasm for the new partnership, noting that both companies share a commitment to providing solutions and building communities for their customers. Stefan Kaluzny, Managing Director of Sycamore Partners, echoed this sentiment, highlighting the potential growth for Chico's FAS's iconic brands under the new ownership.
Advisors for the transaction included Solomon Partners, L.P. and Paul, Weiss, Rifkind, Wharton & Garrison LLP for Chico's FAS, with UBS Investment Bank and Kirkland & Ellis LLP advising Sycamore Partners.
The acquisition is expected to leverage the strengths of Chico's FAS's brands, which cater to a diverse customer base through their brick-and-mortar boutiques, online stores, and the StyleConnect digital styling tool. The company's digital-first approach and customer-centric philosophy have been key elements of its success in the competitive fashion retail sector.
This move by Sycamore Partners is in line with their strategy of improving the operating profitability and strategic value of their investments. The firm manages approximately $10 billion in committed capital and has a portfolio that includes several other retail brands.
The information for this article is based on a press release statement from Chico's FAS, Inc.
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