Tween Brands Soars on Dress Barn Takeover

So why would Dress Barn purchase such a flimsy chain? CEO and President David Jaffe said Tween brands will give Dress Barn the opportunity to diversify.

And it seems the tween market is the next destination of growth for apparel chains. Earlier this month Aeropostale(ARO Quote) opened its new children's concept, P.S., which targets practically the same demographic as Tween Brands.

Dress Barn anticipates the transaction will be neutral to earnings in the first full year of operations and add to earnings in the future.

Tween Brands will become a Dress Barn subsidiary upon completion, with its Chairman and CEO Mike Rayden reporting to Jaffe.