Apollo Taking Claire's Private for $3.1B
Claire's Stores Inc. agreed to a $3.1 billion takeover proposal from New York-based private equity firm Apollo Management LP, the costume jewelry retailer said Tuesday.
Claire's, which operates about 3,000 stores in the U.S. and around the world under the names Claire's and Icing by Claire's, sells low-cost costume jewelry and accessories primarily to tweens, teens and young adults.
Claire's is the latest among a number of major retail outlets that have taken buyouts. The company last year retained Goldman, Sachs Co. as its financial adviser to assist in the search for buyers.
Under terms of the agreement, Claire's shareholders will receive $33 in cash per share. The purchase price represents a 7.3 percent premium to the stock's Monday closing price on the New York Stock Exchange.
On Tuesday, however, company shares were traded up $1.12, or 3.64 percent, to close at $31.
88.
Bonnie and Marla Schaefer, Claire's co-chairwomen and chief executives, issued a joint statement saying the Apollo offer is "in the best interests of our shareholders."
The Schaefer family, which owns a significant percentage of Claire's equity, agreed separately to vote its shares in favor of the deal.
A telephone call to Claire's by The Associated Press was not immediately returned Tuesday evening.
"We look forward to partnering with Claire's management team and employees to build on the many strengths of the company," said Peter Copses, a senior partner at Apollo. "We believe that the increased flexibility available to a private company will enable Claire's to capitalize on the many opportunities before it, both here and abroad.
"
Claire's appears to be taking advantage of a cash-rich environment for private equity players, which have been snapping up retailers from Neiman Marcus Group Inc. to Toys "R" Us Inc., along with apparel makers, in deals that turned those acquisitions into private companies.
Neiman Marcus was acquired in October 2005 by Texas Pacific Group and Warburg Pincus. A few months earlier, two private equity firms, Kohlberg Kravis Roberts Co. and Bain Capital Partners LLC, and a real estate developer, Vornado Realty Trust, acquired Toys "R" Us.
Michaels Stores Inc. was taken private in late 2006 by private equity firms Bain Capital and The Blackstone Group.
"There's a lot of money floating around and it's got to be deployed and Claire's is a good business," said Allan Ellinger, senior managing partner at New York-based MMG, an investment banking and strategic advisory practice.
The deal is subject to regulatory review and the approval of Claire's shareholders.
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Tuesday, March 20, 2007 Claire's Stores Inc.
agreed to a $3.1 billion takeover proposal from New York-based private equity firm Apollo Management LP, the costume jewelry retailer said Tuesday.
Claire's, which operates about 3,000 stores in the U.
S. and around the world under the names Claire's and Icing by Claire's, sells low-cost costume jewelry and accessories primarily to tweens, teens and young adults.
Claire's is the latest among a number of major retail outlets that have taken buyouts.
The company last year retained Goldman, Sachs Co. as its financial adviser to assist in the search for buyers.
Under terms of the agreement, Claire's shareholders will receive $33 in cash per share.
The purchase price represents a 7.3 percent premium to the stock's Monday closing price on the New York Stock Exchange. On Tuesday, however, company shares were traded up $1.
12, or 3.64 percent, to close at $31.88.
Bonnie and Marla Schaefer, Claire's co-chairwomen and chief executives, issued a joint statement saying the Apollo offer is "in the best interests of our shareholders."
The Schaefer family, which owns a significant percentage of Claire's equity, agreed separately to vote its shares in favor of the deal.
A telephone call to Claire's by The Associated Press was not immediately returned Tuesday evening.
"We look forward to partnering with Claire's management team and employees to build on the many strengths of the company," said Peter Copses, a senior partner at Apollo. "We believe that the increased flexibility available to a private company will enable Claire's to capitalize on the many opportunities before it, both here and abroad."
Claire's appears to be taking advantage of a cash-rich environment for private equity players, which have been snapping up retailers from Neiman Marcus Group Inc.
to Toys "R" Us Inc., along with apparel makers, in deals that turned those acquisitions into private companies.
Neiman Marcus was acquired in October 2005 by Texas Pacific Group and Warburg Pincus.
A few months earlier, two private equity firms, Kohlberg Kravis Roberts Co. and Bain Capital Partners LLC, and a real estate developer, Vornado Realty Trust, acquired Toys "R" Us. Michaels Stores Inc.
was taken private in late 2006 by private equity firms Bain Capital and The Blackstone Group.
"There's a lot of money floating around and it's got to be deployed and Claire's is a good business," said Allan Ellinger, senior managing partner at New York-based MMG, an investment banking and strategic advisory practice.
The deal is subject to regulatory review and the approval of Claire's shareholders.
Keywords: New York, Toys r, Toys r Us, r Us, Bain Capital, Stores Inc, Neiman Marcus, Kravis Roberts, Us Inc, Texas Pacific Group
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