Private equity firm acquires women’s business clothing retailer for $380 million
Acquisition of businesses these days are considered the sign of tough times brought by the global financial crisis. However, this transaction may be one of those rare exceptions. In fact, the acquisition is a healthy business sign for both parties.
Private equity firm Advent International Corporation has reportedly acquired women’s business clothing retailer Charlotte Russe Inc. for a lucrative price tag of $380 million. This can be translated to $17.50/share purchase for the San Diego-based clothing chain.
Earlier this year, Advent purchased a majority interest in Fifth Third Bancorp’s payment processing unit in a tune of $2.35 billion. The Boston-based private equity firm has also invested in other lucrative businesses.
As the new owners of Charlotte Russe, Advent has entered the competitive and financially-challenge women’s business clothing industry. There are about 500 Charlotte Russe stores, mostly located in malls and are competing with several stores selling similar items such as H&M and Forever21 who also sell appropriate undergarments and lingerie.
Advent executive Jenny Ming is reportedly chosen by the private equity firm to oversee the investment on Charlotte Russe. Ming is a former president of Old Navy chain, a subsidiary of Gap Inc.
