Sycamore Partners, which last year bought Jones Group, is acquiring Belk Inc. for about $3 billion.
Under the terms of the merger agreement, all Belk stockholders will receive $68.00 per share in cash for each share of Belk common stock they own.
“We are delighted to have found a financial partner that sees what we see in Belk: a 127-year-old brand that remains relevant today with exceptional customer loyalty in small, medium and large cities throughout the South,” said Tim Belk, chairman and chief executive officer of Belk, Inc., in a statement. “We plan to grow Belk by executing our current strategic initiatives and undertaking new growth initiatives together with Sycamore. This transaction is an across-the-board win for our stakeholders.”
Stefan Kaluzny, Managing Director of Sycamore Partners, said in a statement, “We have great respect for Belk’s management team and associates, its deeply rooted brand, its footprint of stores and its growing online presence. Belk is exactly the kind of investment we look for: an outstanding brand with a proven success formula and the potential for further growth.”
Under the terms of the transaction, Tim Belk will remain CEO of Belk and the company will continue to be headquartered in Charlotte.
The deal is expected to be completed in the fourth quarter.
Sycamore has been building its portfolio during the last several years. In 2014, it bought Jones Group, which was comprised of Nine West, Stuart Weitzman, Kurt Geiger and other brands. In a quick move, Weitzman was then sold to Coach earlier this year.