Advent Wraps Up Charlotte Russe Tender
Boston PE firm will add another well-established apparel retailer to its portfolio.
October 14, 2009
Advent International, the Boston private equity firm, said Wednesday that it has completed its tender offer for shares of juniors' apparel retailer Charlotte Russe Holding.
Shareholders owning 19.3 million shares, or 88.9% of fully-diluted shares, in the San Diego company tendered their stock in support of Advent's previously announced $17.50-per-share, or $380 million, take-private purchase of Charlotte Russe.
"Advent’s investment in Charlotte Russe is consistent with the strategy we have successfully adhered to over the past 25 years of building valuable companies in retail and our other target industries," said David Mussafer, a managing partner of Advent, in a statement.
Charlotte Russe, a 501-store chain, sells a range of trendy apparel, including jeans and skirts, targeted at young women in their teens and twenties from mall-based stores in 45 states and Puerto Rico. Last year, the company generated $823.3 million in sales.
For Advent, the deal gives it control of a 34-year-old retailer with a relatively new management team installed in November 2008 and headed by chief executive John Goodman.
Charlotte Russe competes against other publicly traded junior retailers like Bebe Stores, Wet Seal and Hot Topic.
As Mussafer noted, Advent is familiar with investing in apparel retailers. It profited from a $93 million equity investment in Canadian women's yoga clothing seller lululemon athletica. The private equity firm's portfolio includes French women's clothier Gerard Darel and German discount apparel business Takko Fashion.
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