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Golden Gate Capital Exits J. Jill

Arcapita Bank has agreed to buy a majority stake in clothing retailer J. Jill from private equity firm Golden Gate Capital. Golden Gate Capital will remain a minority shareholder of the company. Financial terms of the deal were not released. Golden Gate Capital bought the J. Jill apparel brand from Talbots Inc. in 2009, paying approximately $75 million. Arcapita is an investment bank headquartered in Bahrain.

PRESS RELEASE
Golden Gate Capital announced that an affiliate has entered into a definitive agreement for the sale of a majority stake in J. Jill to an affiliate of Arcapita Bank B.S.C.

J. Jill, a leading multi-channel retailer of women’s apparel, will continue to be led by President and CEO Paula Bennett and the current management team. As part of the transaction, Golden Gate Capital will remain a minority shareholder of the company.

“We have enjoyed a very successful partnership with Paula Bennett and the entire J. Jill team,” said Joshua Olshansky, a Managing Director of Golden Gate Capital. “J. Jill is a fantastic brand and, given their experience in the sector, Arcapita is well positioned to continue building upon the company’s long-term growth plan.”

“We look forward to working closely with Paula and her team to continue their success and help the company expand its current operations and open new store locations,” said Scott Buschmann, a Principal of Arcapita. “J. Jill occupies a distinct space in women’s branded apparel. We believe that the company’s strong brand equity, deep customer loyalty and proven multi-channel strategy position it extremely well for continued expansion.”

“We have worked very closely and successfully with Golden Gate Capital to re-energize the J. Jill brand and look forward to partnering with Arcapita to continue our strong momentum,” said Bennett. “This transaction is a tribute to the more than 2,800 J. Jill associates whose dedication to our customers has made our company’s success possible.”

Bank of AmericaMerrill Lynch acted as financial advisor to J. Jill on the sale and Kirkland & Ellis LLP acted as legal advisor on the transaction.

About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private investment firm with approximately $9 billion of capital under its management. The firm’s charter is to partner with world-class management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including going-privates, corporate divestitures, leveraged buyouts and recapitalizations. For additional information, visit www.goldengatecap.com.

About Arcapita Bank B.S.C.
Arcapita is a global investment bank headquartered in Bahrain with offices in Atlanta, London and Singapore, and operates across four lines of business: Private Equity, Real Estate, Infrastructure and Venture Capital. Since it was founded in 1997, Arcapita has completed over 70 transactions with a total value of approximately $29 billion and has an equity capital base of $1.6 billion, with $7.9 billion in funds under management. For additional information, visit www.arcapita.com.

About J. Jill
J. Jill is a leading multi-channel retailer of woman’s apparel. Emphasizing a sophisticated casual lifestyle, J. Jill offers its merchandise through 225 stores across the United States, a website, and catalogs. Originally founded in 1959, J. Jill is headquartered in Quincy, Massachusetts. For additional information, visit www.jjill.com.