Chico’s FAS acquired by Sycamore Partners in $1bn all-cash deal

Chico’s FAS, Inc., a prominent name in the fashion retail industry, announced the completion of its acquisition by Sycamore Partners, a private equity firm known for its investments in the consumer and retail sectors.

The transaction, valued at approximately $1 billion, was settled at $7.60 per share in an all-cash deal, leading to the delisting of Chico’s FAS from the New York Stock Exchange.

This acquisition signifies a major milestone for Chico’s FAS, aligning with its vision of being a customer-centric, product-driven, and digitally savvy company.

Chico’s FAS CEO and President Molly Langenstein expressed excitement about joining the Sycamore portfolio, emphasizing the shared commitment to building communities and creating memorable experiences. Stefan Kaluzny, Managing Director of Sycamore Partners, conveyed his anticipation for supporting the company’s growth and helping its iconic brands, including Chico’s, White House Black Market, and Soma, reach their full potential.

Sycamore Partners Completes Takeover of Chico’s FAS for $7.6 Per Share

Solomon Partners, L.P., provided financial advisory services to Chico’s FAS, while Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as its legal advisor. UBS Investment Bank and Kirkland & Ellis LLP advised Sycamore Partners in the transaction.

Founded in 1983, Chico’s FAS is based in Florida and has revolutionized the fashion retail experience by creating fashion communities focused on customer service. With over 1,256 stores in the U.S. and additional international franchise locations, Chico’s FAS is a leading retailer in North America, known for its three unique brands – Chico’s, White House Black Market, and Soma.

The acquisition by Sycamore Partners is expected to propel Chico’s FAS into a new era of innovation and growth. The company aims to leverage its expanded resources to further enhance its product offerings and digital presence, reinforcing its commitment to delivering confidence and joy to its customers.

The acquisition of Chico’s FAS by Sycamore Partners marks a significant development in the fashion retail sector. It not only solidifies Chico’s FAS’s position as a leading retailer but also opens doors to new opportunities for growth and innovation. The strategic move is set to strengthen Chico’s FAS’s brand presence and continue its legacy of providing high-quality fashion experiences to a diverse customer base.