US: Apax completes Rue21 buyout
By Katie Smith | 11 October 2013
Private equity firm Apax Partners has completed its US$1.1bn takeover of teen apparel retailer Rue21.
The retailer, which operates 982 stores, will continue to be headquartered in Warrendale, Pennsylvania, the companies said.
Under the terms of the deal announced in May, Rue21 was allowed to evaluate and potentially enter into negotiations with any parties that made a better offer. However, no alternative offers were submitted.
Rue21 last month reported an 88% decline in second-quarter profit to US$1.1m.
Funds Advised by Apax Partners Complete Acquisition of rue21
WARRENDALE, Pa. & NEW YORK--(BUSINESS WIRE)-- rue21, inc. (NASDAQ:RUE) ("rue21" or the "Company"), a leading specialty apparel retailer of girls and guys apparel and accessories, and Apax Partners, a global private equity firm, today announced the completion of the acquisition of rue21 by funds advised by Apax Partners for $42.00 per share in cash.
As previously announced, the transaction was approved at a special meeting of stockholders held on September 19, 2013. Pursuant to the terms of the merger agreement dated May 23, 2013, funds advised by Apax Partners have now acquired all of the outstanding shares of rue21. As a result, rue21 stock will cease trading on the NASDAQ Stock Market effective today.
Stockholders will not have to take any action to receive the merger consideration, as the exchange of their shares for the merger consideration will be handled by the bank or broker.
Perella Weinberg Partners acted as financial advisor to the Special Committee of the rue21 Board of Directors. Kirkland & Ellis LLP and Potter Anderson & Corroon LLP acted as legal advisors to the Special Committee. J.P. Morgan Securities LLC (lead advisor), BofA Merrill Lynch and Goldman Sachs provided financial advice to Apax. Committed debt financing for the transaction is being provided by BofA Merrill Lynch, J.P. Morgan and Goldman Sachs. Simpson Thacher & Bartlett LLP and Richards, Layton and Finger, P.A. acted as legal advisors to Apax Partners. Ropes & Gray LLP acted as legal advisor to the SKM funds.
About rue21, inc.
rue21 is a leading specialty apparel retailer offering exclusive branded merchandise and the newest trends at a great value. rue21 currently operates 982 stores in 47 states. Learn more at www.rue21.com.
About Apax Partners
Apax Partners is one of the world's leading private equity investment groups. It operates globally and has more than 30 years of investing experience. Funds under the advice of Apax Partners total over $40 billion. These Funds provide long-term equity financing to build and strengthen world-class companies.
Over the past 10 years, funds advised by Apax have invested approximately $6.3 billion of equity in retail and consumer businesses. Apax has extensive experience in fashion apparel, footwear and accessories through current and previous investments including Tommy Hilfiger Corporation, an apparel retail company and one of the world's leading lifestyle brands, which was acquired by PVH Corp. Apax also partnered with PVH in the company's successful acquisition of Calvin Klein. Other fund investments include Advantage Sales & Marketing, the premier outsourced sales and marketing services provider to consumer packaged goods companies and retailers in North America, and Cole Haan, a leading designer and retailer of premium footwear and related accessories. Internationally, funds advised by the firm are currently invested in New Look, a UK-based value fashion retailer and Takko, a value apparel retailer operating in Germany, Central Europe and Russia. Notable investments in retail and consumer businesses by Apax include Dollar Tree, Children's Place,Bob's Discount Furniture, Sunglass Hut, Charlotte Russe, Tommy Bahama, Hibbett Sporting Goods, Teavana, Ollie's Bargain Outlet, Comark, CBR, Lifetime Fitness, Spyder Active Sports, Miller's Ale House and Café Rio.
Original source: http://www.rue21inc.com/releasedetail.cfm?ReleaseID=796275
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US: Apax completes Rue21 buyout