Two Firms to Acquire J Crew for $2.8B – Sources

TPG Capital and Leonard Green & Partners offered $2.8 billion for the acquisition of US-based fashion retailer J Crew Group Inc, a source familiar with the matter disclosed on Monday.

Two companies are brewing a $2.8 billion deal for the acquisition of US-based fashion retailer J Crew Group Inc, sources said on Monday.

Sources familiar with the matter said that the deal, which is expected to be announced on Tuesday, involves companies like TPG Capital and Leonard Green & Partners.

Also, sources said that J Crew has opted to use the so-called “go shop” option, which would allow the company to ask for higher or superior offers from TPG and Leonard Green.

“The one month go-shop period would allow both acquiring firms to see how J Crew performs during the holiday shopping season,” the source said.

The $2.8 billion or $43.50 per share offer would give J Crew shareholders a 15 percent premium for their stocks, which was pegged at $37.65 when trading closed on Monday.

Based on the terms of the agreement, TGP, a former owner of J Crew, would have a 75 percent stakes at the company, while Leonard Green would have the remaining shares. The source added that there is a big possibility that J Crew chairman and chief executive Millard Drexler would participate in the acquisition offers.

Sought for comment, both TPG and Leonard Green refused to discuss the agreement.

To date, J Crew – know for its upscale men and women apparel, has over 246 retail stores, a catalog business, and some 81 factory outlets across the United States.


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