J. Crew Group Inc. said Monday that its acquisition by affiliates of TPG Capital and Leonard Green & Partners for $2.86 billion has been completed.
The affiliates, Chinos Holdings Inc. and Chinos Acquisition Corp., paid $43.50 a share in cash. The transaction was approved by J. Crew’s stockholders at a special meeting of shareholders on March 1. The stock, which had traded under the symbol “JCG,” will be delisted.
The deal spawned a lawsuit by investors against J. Crew in Delaware Chancery Court hoping for a higher price per share as shareholders complained that chairman and chief executive officer Millard “Mickey” Drexler held discussions with the private equity firms about a deal before telling the retailer’s board. The two sides reached a $10 million settlement in January, but then the shareholders tried to renege on the agreement. Meanwhile, the lawsuit is still on the court’s docket. A Delaware judge is expected to rule on the validity of the settlement.
J. Crew said it solicited 59 potentially interested buyers and signed four confidentiality agreements. The go-shop period, which was set to expire on Jan. 15, was extended by a month, but even then there was no one else stepping up to the plate to put in a better offer.
In its most recent earnings report, for the third quarter ended Oct. 30, J. Crew posted a 13.8 percent decline in income to $37.8 million, or 58 cents a diluted share, from $43.9 million, or 67 cents, a year ago. Total revenues rose 3.7 percent to $429.3 million from $414.1 million.