US: Dress Barn completes merger with Tween Brands
Under the stock-swap deal, thought to be worth around $157m, Tween Brands stockholders will receive 0.47 shares of Dress Barn for each share of Tween Brands.
As part of the transaction, Dress Barn is also paying off Tween Brands' outstanding bank debt.
Tween Brands - which targets 7 to 14-year-old girls through its Justice chain - will become a separate subsidiary of Dress Barn.
The combined company operates 2,492 locations with annual sales of around $2.5bn.
Michael Rayden, chief executive officer of Tween Brands, will continue to lead Justice, and will report directly to Dress Barn president and CEO David Jaffe.
Mr Rayden will also join the Dress Barn board of directors.
"I believe that our combined company will be formidable and have significant competitive advantages," Jaffe said.
Rayden added: "Our efforts can now be solely focused on our customers and we plan to utilise this exciting and powerful new platform to further our growth."
Tween Brands shares have been delisted from the NYSE and will cease trading at the close of business today (25 November).
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Women's wear retailer Dress Barn has increased its third quarter and full-year earnings guidance after posting a 77% surge in third quarter sales to US$666m....
A hike in second quarter net sales on the back of a recent acquisition has helped Dress Barn swing to a net profit for the period....
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