Ascena Retail Group is buying Ann Inc., the owner of Ann Taylor and Loft, for about $2.16 billion, the company said on Monday.
Taylor and Loft will join a stable of women?s brands owned by Ascena,
including Lane Bryant , Dressbarn and Cacique. The combined company will
operate 4,900 stores with annual sales of more than $7.3 billion.
transaction will make us part of a larger organization with a
diversified portfolio of brands focused on the women?s apparel market,?
said Ann CEO Kay Krill in a statement.
In the cash and stock
deal, Ann shareholders will receive $37.34 in cash and 68 cents per
share of Ascena stock for each share of Ann they own. The $47 per share
offer represents a 21% premium to Ann?s last closing price of $38.71.
Shares of Ann shot up 22% to $47.18 in premarket trading, while shares of Ascena rose 8%.
deal, which has been unanimously approved by the boards of both
companies, is expected to close in the second half of the year. Ascena
shareholder approval is not required.
Read more at FORBES