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Chico´s FAS to Review Unsolicited Sycamore Partners Buyout Proposal
Monday 13 May 2019

13 May 2019 - US-based women's retailer Chico's FAS, Inc. (NYSE: CHS) has received an unsolicited proposal from Sycamore Partners to acquire the company for USD 3.50 per share in cash, the company has confirmed.

This values Chico's at around USD 407.8m.

Consistent with its fiduciary duties and following consultation with its independent financial and legal advisors, the Chico's FAS board of directors will carefully review the proposal to determine the course of action that it believes is in the best interests of Chico's FAS shareholders.

Chico's FAS shareholders do not need to take any action at this time.

The company noted that it had recently received and rejected an unsolicited proposal from Sycamore to acquire Chico's FAS for USD 4.30 per share in cash.

Consistent with its fiduciary duties, the board carefully reviewed the prior proposal.

Following this review, the board unanimously determined that the prior proposal substantially undervalued Chico's FAS and was not in the best interests of Chico's FAS shareholders.

On April 24, 2019, Chico's FAS appointed Bonnie Brooks, former vice chair, president and CEO of Hudson's Bay Company and a current member of the Chico's FAS board of directors, as Interim CEO.

The Chico's FAS Board, with the assistance Herbert Mines Associates, has initiated a search for a permanent CEO and president that is well underway. The board and management team are taking the necessary steps to drive top line growth in all three of the company's brands.

Significant work is ongoing to improve the company's performance, increase flexibility and efficiency across the organisation, and fully leverage the advanced capabilities of Chico's FAS' integrated omnichannel platform.

The company, through its brands Chico's, White House Black Market, Soma and TellTale is a leading omnichannel specialty retailer of women's private branded, sophisticated, casual-to-dressy clothing, intimates and complementary accessories.

As of February 2, 2019, the company operated 1,418 stores in the US and Canada and sold merchandise through 83 international franchise locations in Mexico.

The company's merchandise is also available at online as well as through third party channels.

Goldman Sachs and Co. LLC is serving as financial advisor to Chico's FAS, and Paul, Weiss, Rifkind, Wharton and Garrison LLP is serving as legal counsel.
Date Published: 13/05/2019
Target: Chico´s FAS, Inc
Country: USA
Deal Size: 407.8m (USD)
Sector: Wholesale/Retail
Type: LBO
Financing: Cash
Status: Bidding
Buyer: Sycamore Partners