Chico's FAS Agrees To Go Private In $1 Bln Deal

(RTTNews) - Fashion company Chico's FAS, Inc. (CHS) announced Thursday that it has entered into a definitive agreement to be acquired by private equity firm Sycamore Partners for $7.60 per share in cash.

Upon the deal closure, Chico's FAS stock will no longer be listed on the New York Stock Exchange, and it will become a privately held company.

The per share purchase price in the deal represents a 65% premium to the company's closing stock price on September 27, the last trading day prior to the latest announcement.

The deal has been approved unanimously by the Chico's FAS Board of Directors, and is expected to close by the end of the first calendar quarter of 2024, subject to customary closing conditions and approvals.

The transaction is not subject to a financing condition.

Molly Langenstein, Chico's FAS Chief Executive Officer and President, said, "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."

In the deal, Solomon Partners, L.P. is acting as financial advisor to Chico's FAS, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal advisor.

Kirkland & Ellis LLP is acting as legal advisor to Sycamore Partners.