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Sycamore Partners Offers $212M For Talbots

Struggling women’s clothing retailer Talbots Inc. has received an unsolicited letter from private equity firm Sycamore Partners, proposing a $212 million buyout of the company. The $3-a-share cash offer values the retailer at a 92% premium to the stock’s Tuesday close of $1.56. As reported previously, Sycamore in August grabbed a 9.9% stake in Talbots, becoming the second biggest shareholders in Talbots, after OppenheimerFunds, which at the time held a 13.27% stake, according to Reuters. Talbots’ stock has dropped 82 percent this year, Reuters reported Wednesday. Talbots in a written statement Tuesday said it was evaluating the buyout proposal.

The Talbots, Inc. (NYSE:TLB) today announced that its Board of Directors has received an unsolicited letter, dated December 6, 2011, from Sycamore Partners outlining a non-binding proposal to acquire all of the Company’s outstanding common stock for $3.00 per share. The Board, in consultation with its external legal and financial advisors, Dewey & LeBoeuf LLP and Perella Weinberg Partners, intends to evaluate the proposal consistent with its fiduciary duties to act in the best interest of the Company’s stockholders.

The Talbots, Inc. is a leading specialty retailer and direct marketer of women’s apparel, shoes and accessories. At the end of the third quarter 2011, the Company operated 551 Talbots stores in 46 states and Canada.