J.Crew Goes Private for $3 Billion; Mickey Drexler to Remain CEO


>> J.Crew
is going private. Private equity firms Leonard Green & Partners and TPG Capital — a former owner of the retailer — bought outstanding shares today for $43.50 apiece — a nearly 16 percent premium to J. Crew’s Monday closing price — tallying to an approximately $3 billion deal overall.

J.Crew, the retailer's chairman and CEO Mickey Drexler, and the firms have been in talks for several weeks, and Drexler is expected to continue in his roles. As of Sept. 17, Drexler remained one of the company's biggest shareholders, with a roughly 5.4 percent stake.

“I am pleased to announce this agreement as it delivers significant value to our shareholders,” Mr. Drexler said in a statement. ” As I have always said, we are in this for the long term and we do what we do day in and day out so we can deliver the best possible products to our customers.”

J. Crew is holding a go-shop period through Jan. 15, to give prospective rival bidders the chance to evaluate the company’s holiday sales performance. We've heard from a source inside the company that women's sales have been stagnant as of late, and Fashionista has heard the same — although apparently men's sales have continued to rise for the retailer.

Latest