Aug. 24, 2009 (United Press International) -- U.S. specialty women's clothing retailer Charlotte Russe (NASDAQ:CHIC) said Monday it will be "taken private" by private equity firm Advent International Corp.
Charlotte Russe Holding Inc. of San Diego, Calif., said in an announcement Monday that Advent would pay $380 million, or $17.50 per share, in a cash tender offer to purchase all outstanding shares of the company's common stock starting Aug. 31.
The 501-store chain, which targets young women in the 20s and teenagers with their clothing and accessory lines, said following completion of the tender offer, it plans to complete a second-step merger in which any remaining shares of Charlotte Russe will be converted into the right to receive the same price per share paid in the tender offer.
"After careful consideration of a full range of strategic alternatives, including an extensive, publicly announced sale process, we are pleased to have reached this agreement with Advent, which creates substantial value for our stockholders," Charlotte Russe Chairman Jennifer Salopek said.
"We are excited to purchase Charlotte Russe and to work with former Old Navy president Jenny Ming, an Advent operating partner, to build on the foundation established by the management team," Advent managing partner David Mussafer said.
