Sycamore Partners is buying Talbots Inc. for $369-million, plus debt -- a steal considering that the struggling women’s retailer had snubbed earlier, higher bids.
The private equity firm will take over Talbots for $2.75 a share in a board-approved deal expected to close in the third quarter. Last week, Sycamore walked away from talks with the retailer after offering $3.05 a share. In early May, Talbots had sniffed that a $3-a-share proposal was “inadequate.”
Why the change of heart? Investors were displeased with all the back and forth from Hingham, Mass.-based Talbots and forced its stock into a deep plunge.
The final purchase price for the retailer is 76% higher than its closing stock price on Dec. 6, just before Sycamore’s initial overtures became public. But compared to the closing price on May 30, it’s a 113% premium.