How much is Dress Barn paying to acquire Tween Brands?
NEW ALBANY, Ohio (AP) — Girls’ clothing retailer Tween Brands (TWB) says it’s being acquired by women’s apparel seller Dress Barn (DRBN) in a stock deal worth about $157 million. Suffern, N.Y.-based Dress Barn also will pay off the bank debt of Tween Brands, the New Albany, Ohio, company behind the Justice stores aimed at girls 7-14. Dress Barn CEO David Jaffe said Thursday the Justice brand will diversify and complement his company’s existing business. Officials say Dress Barn will allow Tween Brands to operate as a separate subsidiary with its current management team remaining in place. Tween Brands has posted losses in recent quarters due to a drop in sales amid the recession. Dress Barn currently operates 841 Dress Barn stores and 716 stores under the “Maurice’s” name. Sources: http://www.usatoday.com/money/industries/retail/2009-06-25-dress-barn_N.
Dress Barn Inc., the Suffern, New York-based retailer of women’s clothing, said it agreed to buy Tween Brands Inc. for about $157 million in stock to expand into apparel for girls. Each Tween Brand share will be exchanged for 0.47 shares of Dress Barn, the companies said today in a statement. That values the Tween Brand stock at about $6.22 per share, a 19 percent premium over yesterday’s closing price. Dress Barn will also pay Tween Brand’s net outstanding debt of $80 million, said James McCusker, an external spokesman. The merger will add 908 Justice apparel stores, which sell clothing to girls ages 7 to 14. The combined company will have sales of $2.4 billion, according to the statement. Sources: http://www.latimes.com/business/la-fi-dress-barn26-2009jun26,0,102335.
