viewExpress, Inc.

Express leaps as Sycamore reports stake, plans takeover bid


Express Inc. (NYSE:EXPR), the struggling clothing retailer, surged in midday trade after private-equity firm Sycamore Partners said it is interested in acquiring the company.

Shares of the Columbus, Ohio-based company were up 21 percent at $16.45, after rising to as high as $16.75.

Sycamore, which has amassed a 9.9 percent stake in Express, said in a filing that it sent a letter to the company's board yesterday about possibly submitting a binding, fully financed proposal. Sycamore said it may seek discussions with Express's management and board and other stockholders.

“Given the strategic and operational challenges faced by specialty retailers generally and the company in particular, a fully financed, binding, all-cash offer to acquire the company would be a valuable alternative for the company’s board of directors and stockholders to consider,” Stefan Kaluzny, Sycamore’s managing director, said in the letter.

Express confirmed in a statement the receipt of the letter, and said it formed a special board committee to "determine a course of action it believes is in the best interest of all stockholders."

Express said it hired Perella Weinberg Partners LP and Sullivan & Cromwell LLP to advise the company and its new special committee.

The retailer, which is geared toward young adults, broke off from L Brands Inc.  in 2007 and went public in 2010. The company sells work and casual clothing for customers in their 20s and 30s and operates more than 600 stores. 

On May 29, Express lowered its earnings outlook for the year and said "second quarter results will be impacted by the need to move through slow selling spring inventory" and a Memorial Day event that wasn't as successful as last year.

Sycamore, which was started in 2011 by two executives from buyout firm Golden Gate Capital Corp., has been looking for opportunities in a retail economy battered by shaky consumer confidence and declining mall traffic. It previously acquired a stake in Aeropostale Inc. (NYSE:ARO) and extended a $150 million loan to the teen retailer.

Earlier this week, Sycamore announced it had acquired the Coldwater Creek brand and other intellectual property as part of that retailer’s Chapter 11 proceedings.




Quick facts: Express, Inc.

Price: 3.3 USD

Market: NYSE
Market Cap: $222.65 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Southern Gold active on the ground in South Korea with multiple rigs and...

Southern Gold Limited's (ASX:SAU) managing director Simon Mitchell tells Proactive London's Andrew Scott they're looking to become recognised as the go-to name for exploration in South Korea.  ''We're now 100% focused on South Korea and I think that's been well received by the market to...

1 hour, 42 minutes ago

2 min read