Home / Knowledge / News / Apparel/Garments / Dress Barn subsidiary to merge with Tween Brands
Dress Barn subsidiary to merge with Tween Brands
25
Jun '09
Dress Barn Inc and Tween Brands Inc jointly announced that they have entered into a definitive agreement pursuant to which a subsidiary of Dress Barn, Inc. will merge with Tween Brands Inc in a stock-for-stock transaction.

Under the terms of the merger agreement, each share of Tween Brands Inc common stock will be exchanged for 0.47 shares of Dress Barn Inc common stock. Based on Dress Barn Inc's stock price of $13.24 as of June 24, 2009, this consideration would be equivalent to $6.22 per Tween Brands Inc share, representing an aggregate equity value of approximately $157 million.

This represents a premium of 20% over Tween Brands, Inc.'s closing stock price on June 24, 2009. Upon closing of the transaction, Tween Brands Inc's stockholders are expected to own approximately 16% of Dress Barn Inc's diluted outstanding shares. In connection with the transaction, Tween Brands, Inc.'s outstanding bank debt will be repaid.

Dress Barn Inc anticipates that the transaction will be neutral to earnings in the first full year of combined operations and accretive thereafter. On a trailing twelve months basis, the combined company has generated in excess of $2.4 billion in net sales and currently operates 2,465 stores. The transaction, unanimously approved by each of Dress Barn, Inc.'s and Tween Brands, Inc.'s Board of Directors, is expected to close in the fourth quarter of calendar year 2009 and is subject to Tween Brands, Inc. stockholder approval and other customary closing conditions.

David R. Jaffe, President and Chief Executive Officer of Dress Barn Inc, commented, “We are excited to have found another strategically compelling transaction to drive superior value to our shareholders. The Justice concept, which offers an attractive mix of well-priced fashion for girls ages 7 to 14, will diversify and complement our existing business. We are also pleased to welcome the talented and proven Tween Brands, Inc.'s team into our organization. We look forward to working together to fully realize the significant potential of this business.”

Upon completion of the acquisition, Tween Brands Inc, which operates the Justice retail chain, will operate as a separate subsidiary of Dress Barn Inc. Its management team, led by Mike Rayden, will continue to manage operations and lead Justice's future growth. Mike Rayden, currently Chairman and Chief Executive Officer of Tween Brands, Inc., will report directly to David Jaffe.

Rayden commented, “We are exceptionally pleased to partner with dressbarn and maurices. We intend to complete the transition of our business to fully leverage the Justice concept and to further cement our leadership position in the $12 billion tween girls apparel market. I believe that our combined company will be formidable and have significant competitive advantages in this increasingly challenging market environment. We believe this merger with Dress Barn, Inc. reinforces our ability to generate ongoing returns for shareholders.”


Must ReadView All

EU, Japan finalise Economic Partnership Agreement

Textiles | On 18th Dec 2017

EU, Japan finalise Economic Partnership Agreement

Building on the political agreement reached in principle during the...

WTO, ITC launch cotton portal to enhance transparency

Textiles | On 18th Dec 2017

WTO, ITC launch cotton portal to enhance transparency

The World Trade Organisation (WTO) and the International Trade Centre ...

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search