(Filed Under Fashion News). Private equity buy-out firm Advent International Corporation has signed a definite merger agreement with Charlotte Russe Holdings, through which it plans to acquire the retailer's shares. Under the terms of the agreement, Advent’s investment funds will commence a tender offer to purchase in cash all outstanding shares of Charlotte Russe’s common stock and associated rights for $17.50 per share, and a total value of approximately $380 million.
Charlotte Russe announced Monday that it has agreed to the merger agreement after its board of directors unanimously approved it. Jennifer Salopek, chairman of the company, said in a statement: “After careful consideration of a full range of strategic alternatives, including an extensive, publicly announced sale process, we are pleased to have reached this agreement with Advent, which creates substantial value for our stockholders.”
John Goodman, chief executive officer of the company, stated: “Over the last several quarters, we have worked diligently, increasing our focus on individual store performance metrics, better merchandising and implementing best retail practices to improve operational performance, profitability and shareholder returns. Advent brings in-depth sector knowledge of the rapidly changing retail landscape and an exceptional track record of supporting growth. I am confident that this partnership will create opportunities for our employees and positions us well for the future.”
During the recent third quarter ended June 27, 2009, Charlotte Russe cited a net sales increase of 4.9 percent and a comparable store sales decrease of 3.6 percent.
Based in San Diego, Charlotte Russe currently operates 501 mall-based stores for young women in 45 states and Puerto Rico. The retailer carries intimate apparel and intimate accessories including bras; panties; dress tapes; garters; sleepwear; and loungewear.
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