Belk, Inc., a family-owned and operated department store company, has entered into a definitive merger agreement in which investment funds managed by New York-based private equity firm Sycamore Partners will acquire 100 percent of Belk in a transaction with an estimated enterprise value at closing of approximately $3 billion. Under the terms of the merger agreement, all Belk stockholders will receive $68 per share in cash for each share of Belk common stock they own.


“We are delighted to have found a financial partner that sees what we see in Belk: a 127-year-old brand that remains relevant today with exceptional customer loyalty in small, medium and large cities throughout the South,” said Tim Belk, chairman and CEO of Belk, Inc. “We plan to grow Belk by executing our current strategic initiatives and undertaking new growth initiatives together with Sycamore. This transaction is an across-the-board win for our stakeholders.”

“We have great respect for Belk’s management team and associates, its deeply rooted brand, its footprint of stores and its growing online presence,” added Stefan Kaluzny, managing director of Sycamore Partners. “Belk is exactly the kind of investment we look for: an outstanding brand with a proven success formula and the potential for further growth.”

Under the terms of the transaction, Tim Belk will remain CEO of Belk and the company will continue to be headquartered in Charlotte.

The merger agreement was unanimously approved by Belk’s board of directors. The merger is subject to certain customary conditions, including the receipt of regulatory and stockholder approval, and is expected to be completed in the fourth quarter of calendar 2015.

Certain Belk stockholders have agreed to vote shares owned or controlled by them representing, in the aggregate, a majority of the voting power of Belk’s shares, in favor of the transaction.

Goldman, Sachs & Co. is acting as financial advisor and King & Spalding LLP is acting as legal advisor to Belk. BofA Merrill Lynch is acting as financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Sycamore Partners.

Story Credit: Apparel Magazine