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Published on : May 20, 2015

Ann Inc and Ascena Retail Group signed upon a definitive merger accord, which states Ascena will take over Ann Inc in a combination of stock and cash, to be executed in an accretive type transaction. 

At closing, stockholders of Ann Inc. will receive liquid cash US$37.34 and 0.68% share of the common stock of Ascena exchanged in place of each share of common stock of Ann Inc.

As per commented by Ascena Retail, the Ascena stock closed at US$47.00 on May 15, a 21.4% premium on the closing price of Ann stock on the same day.

The agreement unanimously approved by top management in both companies, is likely to close in the second part of 2015, which is subject to customary closing terms.

The other conditions of the agreement include early termination of waiting period which falls in the Hart-Scott-Rodino (HSR) Antitrust Improvements Act that was implemented in 1976.

The agreement is also inclusive of approval of merger of the bearer of majority of outstanding Ann Inc stocks. However, the agreement is free from approval by Ascena stockholders.

As commented by CEO at Ascena, the transaction is a union of two complementary enterprises and management teams, which reinforces the leadership position of the company in retailing for women’s specialty clothing.

He further added, the company is excited to leverage further the operating platform with unique capabilities combined with exceptional talent to foster immediate, substantial, and ongoing value for shareholders. 

On adding Loft and Ann Taylor brands, Ascena will boast as one of the largest and most diversified specialty clothing retailers in North America.