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Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.Teen clothing retailer Charlotte Russe Inc. agreed to be acquired by private-equity firm Advent International Corp. for $380 million, a sign that private-equity deals are coming alive after a largely dormant 2009.
Advent offered $17.50 a share for the San Diego chain, a 27% premium to Friday's closing price.
Though a small acquisition, the deal is a healthy sign for the buyout business. It is the second tender offer struck by a private-equity firm in the past month, and one of a handful struck all year. In late July, Apax Partners struck a deal to take private Bankrate Inc., a personal-finance company, in a $571 million deal.
It also suggests a potential pickup in mergers-and-acquisition activity overall after a very quiet summer. On Monday, specialty drug maker Warner Chilcott said it would acquire Procter & Gamble Co.'s prescription-drug business for $3.1 billion.
Advent made headlines this year when it acquired a majority interest in the payment-processing unit of Fifth Third Bancorp in a transaction valued at $2.35 billion. The Boston private-equity firm has a deep retail portfolio, including a successful investment in Lululemon Athletica, the yoga-clothing emporium that has attracted a cult following.
With Charlotte Russe, Advent enters a very competitive market in a treacherous retail environment. The company operates about 500 mall-based stores in a crowded "fast fashion" segment, selling inexpensive trendy teenage girl's clothing and competing with the likes of Forever 21 and H&M. The chain has struggled and in November installed new management to help turn it around.
Advent said Jenny Ming, an Advent executive and the former president of Gap Inc.'s Old Navy chain, will oversee its Charlotte Russe investment.
At 4 p.m. in Nasdaq Stock Market trading, Charlotte Russe shares were up $3.57, or 26%, to $17.36.
Credit: By Peter Lattman
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