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Chico's exploring sale

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  • | 11:02 a.m. June 10, 2014
  • Charlotte–Lee–Collier
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FORT MYERS — Chico's FAS has discussed a deal to sell itself to a private-equity firm for a 30% premium to its current market value, the Financial Times reports.

Leonard Green, the private-equity firm that bought a 1.3% stake in the Fort Myers-based women's retailer in April, may be one of the suitors, according to the publication.

Chico's has a current market value of $2.4 billion and any deal could rank among the highest take-private transactions. The stock price of Chico's (symbol: CHS) closed at $15.37 on the New York Stock Exchange on Monday, but the news report boosted the price by more than 10% in overnight trading.

The Financial Times report says talks are preliminary and there is no certainty of a deal. Chico's declined to comment, the newspaper says.

Chico's operates nearly 1,500 stores under the Chico's, White House | Black Market, Soma Intimates and Boston Proper brands. The company reported $682 million in sales in the first quarter.



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