Shares of specialty retailer Talbots Inc. (NYSE: TLB) have surged in early trading today after private equity firm Sycamore Partners agreed to acquire the company for approximately $193.3 million in an all cash transaction.
Last week, TLB shares had plunged after the company reported that takeover talks with Sycamore ended without a deal. However, Sycamore has finally agreed to acquire the company at a 10% discount to the offer price.
Sycamore had initially offered TLB $3 per share in December. The offer was later raised to $3.05 per share, but the talks fell apart last week after Sycamore said that it was not prepared to execute a transaction at that time. Finally, the private equity firm reached an agreement with Talbots and will now buy the retailer for $2.75 per share.
Talbot President and CEO of Trudy Sullivan said that the company is pleased with the value the transaction delivers to its stockholders and believes that this is a positive development for all of TLB’s stakeholders.
TLB shares are currently trading 93.02% higher at $2.49 on above average volume of 29.85 million.
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