Apax Partners acquires US teen-apparel retailer rue21 for $1.1 bn
23 May 2013
UK-based private equity firm Apax Partners today acquired teen-apparel retailer rue21 Inc for around $1.1 billion.
Apax will pay $42 per share in cash, representing a 23 per cent premium to rue21yesterday's closing price and approximately 42 per cent to the 90-day volume weighted average price.
The SKM II funds, which collectively own approximately 30 per cent of rue21, have agreed to vote their shares in favor of the transaction.
As part of the agreement, a special committee at rue2 will solicit a superior proposal for 40 days. The go-shop process provides for a termination fee of 1 per cent or approximately $10 million to be paid to Apax.
Pennsylvania-based rue21 is a leading specialty apparel retailer offering exclusive branded girls and guys apparel and accessories. It operates 932 stores in 47 US states.
Bob Fisch, chairman, president and CEO of rue21, said, "This transaction will allow us to focus on achieving our long-term objectives, including growing our business to over 1,700 stores in the US and successfully implementing new initiatives such as e-commerce and rueMan.''
John Megrue, CEO of Apax Partners, said, "We are very proud of the growth that rue21 has achieved. I have worked closely with Bob Fisch to support the Company's growth from less than 100 stores at the time of the initial investment in 1998 to over 900 stores today, and Apax is excited to continue the journey with the Company's senior management team."
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