J. Crew agrees to $3 billion buyout offer

[News_Editor]

J. Crew agrees to $3 billion buyout offer

2010-11-24 02:01:58 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- J. Crew Group, Inc. on Tuesday announced that it has entered into a definitive agreement to be acquired by funds affiliated with TPG Capital and Leonard Green & Partners, L.P.  for approximately $3 billion.

Under the terms of the agreement, holders of the outstanding common shares of J.Crew will receive $43.50 per share in cash. The price represents a premium of 29 percent to J.Crew's average closing share price over the last month.

"I am pleased to announce this agreement as it delivers significant value to our shareholders," Drexler, J.Crew Chairman and CEO, said. "In addition, it is a clear endorsement of J.Crew and of the hard work and commitment of each and every one of our associates."  

Drexler, who will continue as Chairman and CEO and maintain a significant equity investment in J.Crew said to be excited on the new partnership.

A Special Committee of the J.Crew Board of Directors, comprised of four independent directors, and advised by independent financial and legal advisors, negotiated the transaction and recommended it to the full Board.

The agreement was approved by the full Board other than James Coulter, a partner of TPG Capital, and Drexler, who recused themselves from the vote.

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