NEW YORK, United States — Ascena Retail Group Inc. agreed to buy Ann Inc. for about $2.16 billion, adding the Ann Taylor and Loft chains to its collection of women’s apparel brands.
Ann investors will receive $37.34 in cash and 0.68 of an Ascena share for every Ann share they hold, the companies said in a statement Monday. The $47-a-share offer represents a 21 percent premium to Ann’s closing price Friday.
The takeover unites the Ann Taylor and Loft brands with Ascena’s Lane Bryant and Cacique, creating a company with more than 4,900 stores focused exclusively on women’s clothing and accessories. The companies said the deal will add to earnings in the first year after closing.
Ann rose 19 percent to $46.06 at 7:42 a.m. in early trading in New York. The shares had gained 6.1 percent this year through the end of last week. Ascena, which has climbed 13 percent this year, was halted in early trading.
By Kevin Orland; editors: Nick Turner, Kevin Orland, Cecile Daurat.