Ann Taylor and Loft to be Acquired for $2.16bn
One of the largest women’s apparel companies in America has incorporated two dominant brands into it’s portfolio.
Ascena Retail Group announced that it intends to acquire the company that currently owns Ann Taylor and Loft. The deal is reportedly around £2bn. The store count combined for both Ann Taylor and Loft is 4,900 worldwide and roughly expected to generate $7bn in sales.
Kay Krill, CEO of Ann (The parent company of Ann Taylor and Loft) said “The transaction will make us part of a larger organization with a diversified portfolio of brands focused on the women’s apparel market, a strong operating platform and a powerful financial base,”
There had been rumours around Wall Street for months that Ann was interested in a sale. Back in August investor, Engine Capital and hedge fund, Red Alder, were keen on Ann pursuing a buyout. Ann Taylor and Loft, like any other retail chains, struggled during an active promotional retailing environment where customers had grown accustomed to the constant discount prices within the industry.
In the announcement of the sale, the organisations involved pushed that they were all “highly complementary” of each other because they focus on women’s clothing, however Ann Taylor and Loft do target a slightly different segment than existing Ascena owned chains.