US apparel retailer J Crew is to be to bought by private equity firms TPG Capital and Leonard Green & Partners for around US$3bn.

The funds will pay a premium of 29% to J Crew’s average closing share price over the last month, a statement said today (23 November).

Millard Drexler will continue as chairman and CEO and maintain a significant equity investment in the company, it added.

Drexler described the deal as a “clear endorsement of J Crew and of the hard work and commitment of each and every one of our associates. As I have always said, we are in this for the long term and we do what we do day in and day out so we can deliver the best possible products to our customers.”

He added that the “substantial resources and experience” of the private investment firms “will enable us to invest in our future growth.”

Carrie Wheeler, partner of TPG Capital, said: “We are proud of our 13-year history with J Crew since our investment in the company in 1997 and the success it has achieved during our partnership with Mickey.

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