Ads
By
Reuters
Published
Jun 25, 2009
Download
Download the article
Print
Text size

Dress Barn to buy Tween Brands in $157 mln stock deal

By
Reuters
Published
Jun 25, 2009

June 25 (Reuters) - Women's clothing retailer Dress Barn Inc (DBRN.O) agreed to buy teen-apparel seller Tween Brands Inc (TWB.N) in an all-stock deal valued at about $157 million, the companies said jointly.


Dress Barn

The equity value of the deal represents a premium of 20 percent to Tween Brands' Wednesday 24 June close of $5.18.

Under the agreement, each common share of Tween Brands will be exchanged for 0.47 shares of Dress Barn common stock.

Dress Barn, which expects the deal to be neutral to earnings in the first full year of combined operations and accretive thereafter, will repay Tween Brands' outstanding bank debt as part of the deal.

Tween Brands shareholders will own about 16 percent of Dress Barn after the deal.

Tween Brands shares rose 21.4 percent to $6.29 on the news, while Dress Barn Inc (DBRN.O) shares added 4.2 percent to trade at $13.80 before the bell. (Reporting by Dhanya Skariachan in Bangalore; Editing by Himani Sarkar)

© Thomson Reuters 2024 All rights reserved.