TowerBrook to acquire J.Jill from Arcapita and Golden Gate Capital

TowerBrook Capital Partners LP has agreed to buy fashion retailer J.Jill. The sellers are Arcapita and Golden Gate Capital. No financial terms were disclosed. The transaction is expected to be completed in the second quarter of this year. Paula Bennett will continue as president and CEO of J.Jill. Morgan Stanley and Houlihan Lokey provided financial advice to J.Jill on the deal while Macquarie Group was financial advisor to TowerBrook Capital Partners.

PRESS RELEASE

NEW YORK–(BUSINESS WIRE)–TowerBrook Capital Partners L.P. (“TowerBrook”), the New York and London-based investment management firm, today announced that it has entered into a definitive agreement to purchase J.Jill, a leading multi-channel fashion retailer of women’s apparel, accessories and footwear. TowerBrook will acquire J.Jill in its entirety from global investment firm Arcapita and private equity firm Golden Gate Capital. Financial terms of the transaction were not disclosed.

The J.Jill brand and focused product is designed for women who lead rich, full lives and is recognized for comfort, aesthetic and quality. With a strong and evolving data-driven omni-channel platform, J.Jill has an intense focus on establishing strong connections with new and existing customers through unique monthly collections and an expanding base of over 250 stores, a catalog and website. With a strong foundation and a loyal customer base attracted to the brand’s relaxed, inspired style, J.Jill is positioned to seek continued momentum and growth in a dynamic and rapidly changing retail landscape.

Paula Bennett will remain in her current role as President and Chief Executive Officer of J.Jill, working alongside TowerBrook to build on the company’s success.

“The sale of J.Jill reflects our industry leading success, having just completed our best sales year in history and 12 quarters of consecutive growth. We are delighted to partner with TowerBrook. Their investment in J.Jill provides support for future development and the ability to maximize our potential as a brand and business. We have a shared vision to capitalize on our understanding of our customer and the strength of our omni-channel business. We look forward to the opportunities ahead for J.Jill to continue to delight, inspire and guide our customers,” said Paula Bennett, President and CEO of J.Jill.

TowerBrook has deep expertise and a strong network in the consumer and retail space, working with companies such as Jimmy Choo, True Religion, Kaporal and Phase Eight, and also brings experience with J.Jill’s particular customer base. TowerBrook will work closely with Paula and J.Jill’s talented team to build on its solid omni-channel foundation, pursue additional growth opportunities and further enhance performance, continuing its track record of developing brands and businesses to reach their full potential.

The transaction is expected to close in the second quarter of 2015.

Morgan Stanley and Houlihan Lokey acted as financial advisors to J.Jill. Macquarie Group acted as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor to TowerBrook Capital Partners. Fully committed financing will be provided by Jefferies and Macquarie Group.

About J.Jill
J.Jill is easy, relaxed, inspired style. An omni-channel premier retailer of misses’, petite, tall and women’s clothing, in addition to accessories and footwear, J.Jill is committed to delight, inspire and guide customers with a new collection every month that is delivered through 250 stores nationwide, 26 catalogs and a robust ecommerce experience. J.Jill is headquartered outside Boston. For more information, please visit www.JJill.com.

About TowerBrook Capital Partners
TowerBrook Capital Partners L.P. is an investment management firm with approximately US$7.5 billion under management and a track record of creating value for investors. The firm is based in Europe and the USA and focuses on making investments in European and North American companies. TowerBrook primarily pursues control-oriented investments in large and middle market companies, partnering with highly capable management teams and seeking situations characterized by complexity. Further information is available at www.towerbrook.com.