Ascena Retail Group Inc. (ASNA) has reached a definitive agreement to acquire Charming Shoppes Inc. (CHRS: Quote) in a cash transaction valued at around $890 million. Ascena has agreed to make a cash tender offer for all outstanding shares of Charming Shoppes at a price of $7.35 per share. The tender offer is expected to begin within 10 business days.
Michael Goldstein, Chairman of the Board of Charming Shoppes noted, "In addition to partnering with a buyer that can support the future growth and development of our businesses, the $7.35 per share consideration represents a premium of 25% to the closing market price of Charming Shoppes common stock on May 1, 2012 and an 89% premium to the unaffected share price of Charming Shoppe's common stock on November 30, 2011, the day prior to our announcement of our strategic review process."
Following the acquisition closure, Charming Shoppes would operate as a separate unit of Ascena. Charming Shoppes is currently led by CEO Anthony Romano. The transaction may close during the second calendar quarter of 2012.
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by RTT Staff Writer
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