Jones Group To Be Taken Private By Sycamore For $1.2 Bln. - Update

(RTTNews) - Apparel company Jones Group Inc. (JNY), Thursday agreed to be taken private by affiliates of Sycamore Partners for about $1.2 billion or $15.00 per share in cash.

The cash offer represents a premium of about 19 percent to Jones Group's 30-day volume weighted average stock price for the period ended April 11 - the last trading day prior to when media reports emerged on the company's strategic alternatives.

Assuming net debt, the transaction is valued at about $2.2 billion and is is expected to close in the second quarter.

Following the announcement, Jones Group shares gained more than four percent in after-hours trade on the New York Stock Exchange.

"This all-cash transaction delivers immediate and compelling value to our shareholders," said Jones Group CEO Wesley Card.

The deal, which is structured as a one-step merger with Jones Group as the surviving corporation, is subject to customary closing conditions, including shareholder and regulatory approvals.

The deal also requires the affirmative vote of a majority of the votes cast by the holders of outstanding shares of the company's stock.

Jones Group put itself up for sale after hedge fund Barington Capital Group acquired a near 2 percent stake in the company and had asked it to sell some of its brands.

But as offers poured in from interested parties, Jones Group decided to go the whole hog, opting for a complete sale. Jones Group's brands include Nine West, Anne Klein and Stuart Weitzman.

Jones Group stock closed Thursday at $14.13, down $0.31 or 2.15%, on a volume of 1.8 million shares. In after hours, the stock gained $0.60 or 4.25%.