Charlotte Russe Finds Parent in PE Deal

SAN DIEGO (TheStreet) -- Women's apparel retailer Charlotte Russe(CHIC Quote) has given in and agreed to be taken private.

The company said today that it will be bought by an affiliate of the Advent International private equity firm for about $380 million in cash.

An Advent unit will buy all outstanding common stock of Charlotte Russe for $17.50 a share, and the rights to buy any preferred shares for the same price. The tender offer is expected to begin no later than Aug. 31 and expire 20 days later.

The deal represents a 27% premium to the retailer's closing price on Friday.

Charlotte Russe had been searching for a buyer since January to help shoulder the burden of its turnaround efforts.

In November, the company rejected a takeover offer by investment firms KarpReilly and H.I.G. Capital, which angered some shareholders.

Russe investors were apparently relieved by the deal, announced Monday, sending shares soaring 26% to $17.36 in morning trading.

-Reported by Jeanine Poggi in New York.