Belk To Be Acquired By Sycamore Partners In $3 Bln Deal

(RTTNews) - Fashion department store operator Belk Inc. (BLKIA, BLKIB) said Monday that it has agreed to be acquired by private equity firm Sycamore Partners for an enterprise value of about $3 billion.

Under the terms of the merger deal, Belk stockholders will receive $68 in cash for each share of Belk common stock owned by them. The transaction, unanimously approved by Belk's board of directors, is expected to close in the fourth quarter of calendar 2015.

Charlotte, North Carolina-based Belk, Inc. is the nation's largest family- owned and operated department store company, with about 300 Belk stores located in 16 Southern states and a growing digital presence. Founded in 1888 by William Henry Belk, the company is in the third generation of Belk family leadership.

New York-based Sycamore Partners is a private equity firm that specializes in consumer and retail investments. The company has more than $3.5 billion in capital under management.

Sycamore Partners' investment portfolio includes Aeropostale, Coldwater Creek, EMP Merchandising, Hot Topic, the Kasper Group, and Talbots, among others.

Commenting on the transaction, Tim Belk, chairman and CEO of Belk said, "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."

Tim Belk will remain CEO of Belk, which will continue to be headquartered in Charlotte.

Certain stockholders of Belk, representing a majority of the voting power of the company's shares, have agreed to vote their shares in favor of the transaction.

Goldman, Sachs & Co. is acting as financial advisor to Belk, while King & Spalding LLP is acting as its legal advisor. For Sycamore Partners, BofA Merrill Lynch is acting as financial advisor and Kirkland & Ellis LLP is acting as legal advisor.

BLKIA is trading at $66.75, down $1.25 or 1.84 percent on a volume of 400 shares.