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Jones Apparel receives proposal to acquire Barneys NY

05 Jul '07

2 min read

Jones Apparel Group Inc announced that it has received an unsolicited non-binding proposal from Fast Retailing Co Ltd (Fast), a Japan based company, to acquire the Company's wholly owned subsidiary Barneys New York Inc (Barneys) for $900 million in cash. The proposal is subject to due diligence and other conditions.

The Company's Board of Directors has made the requisite determination under the Company's stock purchase agreement with affiliates of Istithmar (Istithmar Agreement) that will enable Jones to provide information to Fast and enter into discussions with Fast regarding its proposal.

In the event that Jones were to terminate the Istithmar Agreement to enter into an agreement with Fast, it would be required to pay to an affiliate of Istithmar a termination fee of $20.6 million (or $22.7 million if Jones terminates the Istithmar Agreement after July 22, 2007).

The agreement with Istithmar has not been terminated and remains in full force and effect.

Jones Apparel Group Inc, a Fortune 500 company, is a leading designer, marketer and wholesaler of branded apparel, footwear and accessories. The Company also markets directly to consumers through our chain of specialty retail and value-based stores, and operates the Barneys New York chain of luxury stores.

Jones Apparel Group Inc

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