: Chico’s FAS to be taken private by Sycamore Partners in $1 billion deal, sending stock up 61%

by | Sep 28, 2023 | Stock Market

Clothing retailer Chico’s FAS Inc.
said Thursday it has agreed to be taken private by private-equity firm Sycamore Partners for $1 billion, sending its stock up 61% in premarket trade. Under the terms of the board-approved deal, shareholders will receive $7.60 a share in cash for each Chico’s share owned, equal to a 65% premium over Wednesday’s closing price. The stock was halted premarket for the news.

“Through this investment, we are gaining additional expertise, financial resources and strategic flexibility to fuel the growth of our company and three powerful brands: Chico’s, White House Black Market and Soma,” Chico’s CEO Molly Langenstein said in a statement. The deal is expected to close by the end of the first quarter of 2024. It includes a 30-day “go-shop” period, during which time Chico’s can solicit other bids. Once the deal is completed, Chico’s will operate as a private company and will no longer be listed on the New York Stock Exchange. The stock has fallen 6.3% in the year to date, while the S&P 500
has gained 11%.

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