Ascena Retail Group Inc. is acquiring Ann Inc. — the parent company of Ann Taylor and Loft — for $47 per share in cash and stock in a deal valued at $2.2 billion. The price represents a 21.4% premium over Ann’s closing price on May 15. In August, hedge funds Engine Capital LP and Red Alder LLC publicly called on Ann to explore strategic alternatives, including a sale. In October, Ann entered into a non disclosure agreement with private equity firm Golden Gate Capital for the sharing of certain non-public information with Golden Gate. The private equity firm had filed a 13D on Ann in March of last year, revealing a 9.5% stake in the retailer. The sale of Ann to Ascena is expected to close in the second half of the year. Ascena said it has identified $150 million in annualized run rate synergies that it expects to generate over a three-year period. Ascena’s brands include Lane Bryant, dressbarn, Catherines and Justice. In the last 12 months, Ascena and Ann have combined net sales of $7.3 billion and combined adjusted Ebitda of $670 million. The combined company will operate more than 4,900 stores.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
