Chico’s enters pact to be acquired by Sycamore Partners for $7.60 per share cash

Chico’s FAS announced that it has entered into a definitive agreement to be acquired by Sycamore Partners. Upon completion of the transaction, Chico’s FAS will become a privately held company. Under the terms of the agreement, Chico’s FAS shareholders will receive $7.60 per share in cash. The per share purchase price represents a 65% premium to the company’s closing stock price on September 27, 2023. The transaction, which was approved unanimously by the Chico’s FAS Board of Directors, is expected to close by the end of the first calendar quarter of 2024, subject to customary closing conditions and approvals, including approval by Chico’s FAS shareholders and expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is not subject to a financing condition. The definitive agreement includes a 30-day “go-shop” period that will expire at 11:59 PM ET on October 27, 2023, which permits Chico’s FAS and its financial advisor to actively solicit and consider alternative acquisition proposals. There can be no assurance that this process will result in a superior proposal, and the company does not intend to disclose developments with respect to the “go-shop” process unless and until it determines such disclosure is appropriate or is otherwise required. Upon completion of the transaction, Chico’s FAS common stock will no longer be listed on the New York Stock Exchange.