Sycamore Partners to Acquire Jones Group for $2.2 Billion

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Holiday at Nine West, one of the Jones Group's most important brands

Holiday at Nine West, one of the Jones Group’s most important brands

New York—Ending nearly six months of speculation about its new owner, Jones Group said Thursday it had accepted a buyout offer from private equity firm Sycamore Partners.

The deal, including debt, is for about $2.2 billion, including $1 billion in debt. Sycamore’s offer for Jones is for $15 a share in cash, representing a 19% premium on Jones’ 30-day stock price before April 11 when news reports first emerged about the sale.

Sycamore Expands Its Fashion Portfolio

Jones Group, which owns Nine West, Anne Klein, Jones New York, Kurt Geiger and Rachel Roy, first publicly revealed plans to sell by hiring Citigroup to explore a sale after activist hedge fund Barington Capital pressured such a move.

“This business, which I founded nearly 45 years ago, has expanded into a global portfolio of powerful brands. I am proud of our heritage and believe The Jones Group’s brands will thrive through our partnership with Sycamore,” Jones Group Chairman Sidney Kimmel said in a statement.

Jones Group generated $3.80 billion in revenue in 2012, but posted a loss of $56.1 million.

Sycamore has a growing staple of fashion companies. Last year the firm bought Talbots Inc. for $391 million, including debt. And this year, it acquired teen retailer Hot Topic.

“We are honored that the board of The Jones Group has entrusted Sycamore Partners as the steward of this portfolio of iconic brands,” said Stefan Kaluzny, managing director at Sycamore. “We look forward to a successful partnership with the company’s talented associates as we continue to serve The Jones Group’s many loyal customers.”

Citigroup served as the lead financial advisor to the Jones Group, while Peter J. Solomon Company acted as an advisor to the company’s board. Bank of America Merrill Lynch and Guggenheim Securities advised Sycamore.


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