Who knew that J. Crew was worth this much?
Two investment firms, TPG Capital and Leonard Green & Partners, have bought the prepster clothing brand for just a measly $2.8 billion. Under the terms of the new deal, both firms will work with J. Crew chairman and chief executive Millard S. Drexler.
"This will allow CEO Mickey Drexler and co. to fix what’s wrong with the business–and build on what’s right–without having to deal with public shareholders…. Even though going private often means gaining debt, it also means being able to avoid a black hole," according to Fashionista.
The deal is also expected to include a "go shop" agreement in which J. Crew will have time to solicit a superior offer. This is expected to run through the holidays, according to New York Times sources.
Source: Dealbook; Fashionista