FORT MYERS, Fla. — May 10, 2019 — Chico’s FAS Inc., today confirmed that it has received an unsolicited proposal from Sycamore Partners to acquire the company for $3.50 per share in cash.
Consistent with its fiduciary duties and following consultation with its independent financial and legal advisors, the Chico’s FAS board of directors will carefully review the proposal to determine the course of action that it believes is in the best interests of Chico’s FAS shareholders. Chico’s FAS shareholders do not need to take any action at this time.
The company noted that it had recently received and rejected an unsolicited proposal from Sycamore to acquire Chico’s FAS for $4.30 per share in cash. Consistent with its fiduciary duties, the Board carefully reviewed the prior proposal. Following this review, the Board unanimously determined that the prior proposal substantially undervalued Chico’s FAS and was not in the best interests of Chico’s FAS shareholders.
On April 24, 2019, Chico’s FAS announced the appointment of Bonnie Brooks, former vice chair, president and CEO of Hudson’s Bay Co. and a current member of the Chico’s FAS board of directors, as interim CEO. The Chico’s FAS Board, with the assistance Herbert Mines Associates, has initiated a search for a permanent CEO and President that is well underway. The board and management team are taking the necessary steps to drive top line growth in all three of the company’s brands. Significant work is ongoing to improve the company’s performance, increase flexibility and efficiency across the organization, and fully leverage the advanced capabilities of Chico’s FAS’ integrated omnichannel platform.
Goldman Sachs & Co. LLC is serving as financial advisor to Chico’s FAS, and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel.
Posted May 10, 2019
Source: Chico’s FAS Inc.