HINGHAM, Mass. (AP) — The struggling women's clothing chain Talbots is being acquired by Sycamore Partners for about $193.3 million in cash, an abrupt turnaround after buyout talks appeared to stall last week.
Talbots said Thursday that its stockholders will receive $2.75 per share, which is less than the $3.05 per share previously offered by the private equity firm, but more than double Wednesday's closing price of $1.29. It's also a 76 percent premium to the closing price on December 6, when Sycamore made its first offer of $3 per share.
The Hingham, Mass. retailer has approximately 70.3 million outstanding shares.
Including debt, the deal is valued at close to $369 million.
Shares of The Talbots Inc. doubled to $2.58 in premarket trading.
Talbots said Friday that exclusive talks with Sycamore had ended.