J. Crew Agrees to Private Equity Buyout

J. Crew has agreed to be bought out two PE groups, Sports Authority owner Leonard Green & Group and distressed buyout giant TPG Capital. From the NYTimes’ DealBook:

The buyout firms will pay $43.50 a share, a nearly 16 percent premium to J. Crew’s closing price on Monday.

As expected, J. Crew will conduct a go-shop period through Jan. 15 to give prospective rival bidders the chance to evaluate the company’s holiday sales performance.

The retailer also released its third-quarter results on Tuesday, posting a decline in net income of nearly 14 percent for the period.

Both private equity buyers are big firms with solid track records. Whether they sell J. Crew for parts or rebuild the store, I don’t doubt that they’ll make the most lucrative possible decision for themselves.

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