Ascena Retail Group has agreed to acquire Ann Inc. in a cash and Stock deal valued at $2.2 billion.
Ann shareholders at closing will receive $37.34 in cash and 0.68 of a share in Ascena common stock in exchange for each share of Ann common stock.
The boards of both companies have approved the transaction, which is expected to close in the second quarter. The deal is still subject to certain conditions and regulatory approvals.
Kay Krill, president and chief executive officer of Ann, said, “The transaction will make us part of a larger organization with a diversified portfolio of brands focused on the women’s apparel market.”
David Jaffe, Ascena’s president and ceo, said, “With the addition of Ann Taylor and Loft brands, Ascena will become one of North America’s largest and most diversified specialty apparel retailers, with a tremendous set of opportunities to continue to expand its leadership position in the women’s apparel market.”
Ascena said it will finance the acquisition through bank debt.