bounced Thursday after the company disclosed plans to buy women's specialty retailer
The White House
for $90 million in cash and stock.
Shares of Chico's were up 8% at $27.60 in afternoon trading.
According to the terms of the deal, Chico's will pay $85.6 million in cash and $4.4 million in stock, which is about 176,000 shares. The company expects to complete the acquisition in the third quarter.
Chico's expects to bring in $32 million to $36 million in revenue for the rest of fiscal 2003, based on a closing in September and the planned opening of eight new White House stores during the remainder of this fiscal year.
Additionally, Chico's expects the acquisition to add $100 million to $110 million in sales based on the planned opening of additional White House stores next year.
The White House said it had recently been pursuing an initial public offering. The company has 103 stores in the U.S., the Virgin Islands and Puerto Rico.
Also on Thursday, Chico's was upgraded by Wells Fargo to buy from hold on news of the acquisition.