As part of a definitive agreement, private equity firm Sycamore Partners will acquire family-owned department store Belk for $2.7 billion in cash. As part of the deal, Belk shareholders will receive $68 per share in cash for each share of Belk common stock they own.
The merger is subject to certain customary conditions, including the receipt of regulatory and stockholder approval, and is expected to be finalized in Q4 2015. The Belk Board of Directors unanimously approved the transaction.
Under the deal’s terms, Tim Belk will remain the CEO of the 127-year-old retailer, with the company headquarters remaining in Charlotte, N.C. The retailer will retain its senior management team, and no layoffs are expected. All of the company’s 297 stores also are expected to stay open after the transaction, Belk executives revealed in an interview with The Charlotte Observer.
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Sycamore Partners has invested in a number of other apparel retailers, including Aeropostale, Coldwater Creek, Hot Topic, Jones New York, Nine West Holdings and Talbots.
Belk onboarded Goldman & Sachs as financial advisor and King & Spalding LLP as legal advisor. Sycamore Partners consulted with BofA Merrill Lynch for financial advice and enlisted Kirkland & Ellis LLP to provide legal counsel.
