Chico's FAS Inc. (NYSE:CHS) stock rocketed more than 60% after the clothes retailer announced it was being acquired in a premium priced cash takeover that values the business at $1 billion.
Sycamore Partners, a private equity firm focused on retail, is paying Chico’s shareholders $7.60 per share.
"Sycamore Partners has an outstanding record in the retail industry in partnering with management teams to help businesses reach even greater levels of success,” Chico’s chief executive Molly Langenstein said in a statement.
“We look forward to working with the Sycamore Partners team to unlock Chico's FAS's full potential."
Stefan Kaluzny, Sycamore's managing director, added: “We have long admired the company's three iconic brands, including Chico's, White House Black Market and Soma."
"We look forward to partnering with the company's more than 14,000 talented associates to grow these brands by continuing to deliver excellent products and service to their devoted customers."
In New York, Chico’s FAS stock was up $2.88 or 62.47%, changing hands at $7.49.