Ascena Retail Buys Lane Bryant Owner

Women’s clothing retailer Ascena Retail Group Inc. will buy Charming Shoppes Inc. for $857.2 million in an all-cash deal that will expand its plus-size clothing portfolio, Reuters reported Wednesday. Ascena will pay $7.35 for every Charming Shoppes share – a 24.5 percent premium to the stock’s close on Tuesday. Charming Shoppes, which owns the Lane Bryant, Catherines Plus Sizes and Fashion Bug chains, operates more than 1,800 retail stores across the United States.

(Reuters) – Women’s clothing retailer Ascena Retail Group Inc will buy Charming Shoppes Inc for $857.2 million in an all-cash deal that will expand its plus-size clothing portfolio.

 

Ascena will pay $7.35 for every Charming Shoppes share – a 24.5 percent premium to the stock’s close on Tuesday.

 

The total value of the deal was $890 million, the companies said in a statement on Wednesday. The deal is worth $857.2 million based on the number of Charming Shoppes shares on issue, according to Thomson Reuters data.

 

Charming Shoppes, which owns the Lane Bryant, Catherines Plus Sizes and Fashion Bug chains, operates more than 1,800 retail stores across the United States.

 

The company, which has been losing market share to rivals such as Ann Inc and Chico’s FAS Inc, hired Barclays Capital in December to help it review its options.

 

The transaction will be neutral or marginally add to Ascena’s earnings in the first full year of combined operations, the companies said.