J. Crew to go private in $3B deal

By Associated Press
Posted Nov. 23, 2010 at 9:46 a.m.

J. Crew says it will be taken private in a deal with two investment firms, including its former parent, worth $3 billion.

The preppy retailer will receive $43.50 per share to private equity firms TPG Capital and Leonard Green & Partners, confirming media reports Monday. That is a 16 percent premium to the stock’s closing price of $37.65.
Shares rose 17 percent in premarket trading before being halted.

CEO Mickey Drexler will remain in that role.

TPG took a majority stake in J. Crew Group Inc. in 1997 and remained majority shareholder until the company went public in 2006.

Private equity buyouts are rising after a lull during the recession. Gymboree Corp. in October agreed to be bought by Bain Capital for $1.8 billion.

J. Crew is based in New York.

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