Warrendale, PA—Private equity firm Apax Partners has completed its $1.1 billion takeover of teen apparel retailer Rue21.
The retailer, which operates 982 stores, will continue to be headquartered in Warrendale, Pennsylvania, the companies said.
Under the terms of the deal announced in May, Rue21 was allowed to evaluate and potentially enter into negotiations with any parties that made a better offer. However, no alternative offers were submitted.
Apax Partners is one of the world’s leading private equity investment groups, with more than $40 billion under advisement. Over the past 10 years, funds advised by Apax have invested approximately $6.3 billion of equity in retail and consumer businesses, including fashion apparel, footwear and accessories through current and previous investments including Tommy Hilfiger Corp. and Calvin Klein.
Last month, Rue21 posted an 88% decline in its third quarter profit to $1.1 million, or 4 cents a share. Net sales were up 13.5% to $229.3 million mostly due to new store openings.