Jones Apparel Group Inc has successfully completed its purchase of department store retailer Barneys New York Inc.

The transaction is valued at $397.3 million, which includes $19.00 per common share to Barneys stockholders totalling $291.3m.

In addition, Jones funded the repurchase of Barneys outstanding Senior Secured Notes due 2008, with a face value of $106.0m.

Peter Boneparth, chief executive officer of Jones, said that the transaction complemented its diversification programme and that Barneys' "focus on the luxury consumer" will give "an added dimension" to its current brand portfolio, and lead to further expansion opportunities.

Jones Apparel Group's brands include Jones New York, Evan-Picone, Norton McNaughton and Gloria Vanderbilt.