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Deb Shops announces acquisition by Lee Equity
27 Jul '07
3 min read
Deb Shops Inc announced the signing of a definitive agreement in which Lee Equity Partners, LLC through its affiliate DSI Holdings, LLC (Lee Equity) will acquire 100% of the outstanding shares of Deb Shops for $27.25 per share of common stock in an all-cash transaction.
Total equity value of the transaction is approximately $395 million. Lee Equity will finance this acquisition through cash and new committed credit facilities. Subject to customary regulatory requirements and shareholder approval, the transaction is expected to close in the third fiscal quarter of 2007.
Marvin Rounick, President and CEO of Deb Shops, stated: "We are excited about entering into a transaction with Lee Equity. We believe this transaction is in the best interests of all shareholders. Tom Lee is one of the icons of the private equity business, and we believe the fact that his organization chose to acquire our company is a real testament to the business that the people of Deb Shops have built.
We have had many wonderful accomplishments during our long and successful history and this transaction serves as an important step in the growth of our business. We are pleased that Lee Equity has expressed a commitment to continue to build and grow Deb Shops' business."
Under Lee Equity's ownership, it is expected that Allen Questrom, who has over 40 years of retail apparel experience, will serve as non-executive chairman of the Company and will provide significant strategic direction and leadership to the Company's current senior management team.
Total equity value of the transaction is approximately $395 million. Lee Equity will finance this acquisition through cash and new committed credit facilities. Subject to customary regulatory requirements and shareholder approval, the transaction is expected to close in the third fiscal quarter of 2007.
Marvin Rounick, President and CEO of Deb Shops, stated: "We are excited about entering into a transaction with Lee Equity. We believe this transaction is in the best interests of all shareholders. Tom Lee is one of the icons of the private equity business, and we believe the fact that his organization chose to acquire our company is a real testament to the business that the people of Deb Shops have built.
We have had many wonderful accomplishments during our long and successful history and this transaction serves as an important step in the growth of our business. We are pleased that Lee Equity has expressed a commitment to continue to build and grow Deb Shops' business."
Under Lee Equity's ownership, it is expected that Allen Questrom, who has over 40 years of retail apparel experience, will serve as non-executive chairman of the Company and will provide significant strategic direction and leadership to the Company's current senior management team.
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