Chico’s FAS, Inc. has entered into a definitive agreement to be acquired by the esteemed private equity firm Sycamore Partners, heralding a transformative phase for this Florida-based fashion giant.
Under the terms of this agreement, Chico’s FAS shareholders stand to gain significantly, receiving $7.60 per share in cash. This represents an impressive 65% premium over the company’s closing stock price on September 27, 2023, the day before the transaction announcement. With this transition, Chico’s FAS is poised to shift from a public entity to private ownership, promising a fresh chapter in its storied history.
Currently boasting 1,258 stores across the United States, along with 58 international franchise locations in Mexico and two domestic franchise locations in airports, Chico’s FAS is set to continue its legacy under new ownership.
Molly Langenstein, Chief Executive Officer and President of Chico’s FAS, expressed her enthusiasm, stating, «This investment brings invaluable expertise, financial resources, and strategic flexibility to our company, empowering the growth of our three powerhouse brands: Chico’s, White House Black Market, and Soma.»
Langenstein continued, «Sycamore Partners has an outstanding track record in the retail industry, aligning with our commitment to delivering solutions, fostering communities, and creating memorable experiences that instill confidence and joy in women. We eagerly anticipate collaborating with the Sycamore Partners team to unlock Chico’s FAS’s full potential.»
This transaction, unanimously approved by the Chico’s FAS Board of Directors, is expected to conclude by the end of the first calendar quarter of 2024, pending customary closing conditions and approvals.
Stefan Kaluzny, Managing Director of Sycamore Partners, shared his excitement, stating, «We are thrilled to have reached this agreement with Chico’s FAS and its board of directors. We have long admired the company’s three iconic brands, including Chico’s, White House Black Market, and Soma. Our partnership with the company’s over 14,000 talented associates aims to nurture these brands further, delivering outstanding products and services to their devoted customers.»
