J. Crew Reportedly Close to $3B Buyout
NEW YORK (
) --
J. Crew Group
(JCG)
is close to an agreement to be bought by TPG Capital and Leonard Green & Partners for about $3 billion, according to reports.
TPG and Leonard Green would pay $43.50 a share in cash, or 16% more than J. Crew's closing share price of $37.65 Monday,
Bloomberg
reports, citing two people with knowledge of the matter.
The deal could be announced as soon as Tuesday, but could still fall apart, the people told
Bloomberg
.
Under the deal, TPG Capital, a former owner of J. Crew, would have a 75% stake in the retailer and Leonard Green would own a 25% stake, according to the
Wall Street Journal
, which cited people familiar with the matter.
The private-equity firms plan to work with J. Crew CEO Millard Drexler, who has a more than 5% stake in the company, the people told the
Journal
.
J. Crew reported sales of more than $1.5 billion in its last fiscal year.
The
New York Times
was the first to report on the J. Crew talks.
-- Written by Joseph Woelfel
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Joseph Woelfel
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