Apparel retailer The Talbots Inc and The J. Jill Group Inc, a multi-channel specialty retailer of women's apparel, including accessories and footwear, have signed a definitive merger agreement whereby Talbots will acquire all outstanding shares of J. Jill for $24.05 per share, in cash, for total equity consideration of approx. $517 million, net of option proceeds.
Talbots will finance the transaction with amounts drawn under a new $400 million credit facility, as well as cash on hand. The transaction is expected to be accretive to Talbots earnings in fiscal 2007, including synergies.
Talbots ended fiscal 2005 with 1,083 stores and revenues of approximately $1.8 billion, while J. Jill finished the year with 200 stores and approximately $450 million of revenues.
The combined company will be a leading multi-channel specialty retailer targeting the age 35+ market with 2005 pro forma annual revenues of approximately $2.3 billion, and 1,283 stores located in 47 states, the District of Columbia, Canada and the UK.
Arnold Zetcher, Talbots Chairman, President and CEO, said, "This transaction brings together two great brands, which share a strong customer-first culture and serve distinct yet complementary segments of the age 35+ female population. J. Jill's focus on apparel for a sophisticated casual lifestyle, with artistically inspired styles, provides a perfect counterpoint to Talbots offering of updated modern classics."
Zetcher concluded, "Our intent is to maintain each brand's distinct identity and superior customer experience. Our current plan is to continue to operate separately areas such as merchandising, stores, catalog, web, marketing, visual and store design. Finally, with this transaction, we are continuing to build a great portfolio of brands, which will accelerate our growth and strengthen our position as a leading apparel destination for this highly desirable customer demographic."
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
