Jones Group to be bought up by private equity firm Sycamore Partners for $2.2 billion, including debt

By VCPOST Staff Reporter

Dec 19, 2013 07:46 PM EST

American clothier Jones Group Inc. on Thursday said it had agreed to be bought by investment firm Sycamore Partners LLC for $15 per share or a total of $1.2 billion. 

According to a report by Reuters, Jones expects the deal to close in the second quarter of 2014. The New York-based company's products include luxury shoe brand Stuart Weitzman and Jones New York apparel.

Including the assumption of Jones' net debt, the deal is worth a total of $2.2 billion.The $15 per share price is a 19% premium to share levels in April when media reports surfaced of a possible sale, the report said.

This is the latest purchase of a fashion company by the private equity firm. Sycamore earlier this year took teen retailer Hot Topic Inc. private for $600 million. The New York private equity firm also bought women's apparel chain Talbots Inc. for $391 million including debt last year, Reuters wrote.

Jones put itself up for sale in the summer, following pressure from activist hedge fund manager Barington Capital Group LP. The hedge fund urged Jones to focus on its shoe brands and to pare down its non-core fashion brands. Barington chief executive James Mitarotonda joined the board of Jones in May, the report said. 

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