Barneys New York
From WikiCover
On August 5, 2007, Jones Apparel Group announced that Jones has received an amended offer from affiliates of Istithmar to acquire Barneys New York $900 million in cash and an amended offer from Fast Retailing to acquire Barneys for $950 million in cash. If Jones breaks with Istithmar to accept Fast Retailing, Jones would be required to pay a termination fee of $22.7 million.
On June 22, 2007, Istithmar announced the signing of definitive agreements to acquire Barneys New York, the luxury specialty retailer, from Jones Apparel Group for 825 million dollars.
Barneys New York is a luxury retailer with flagship stores in New York City, Beverly Hills, Chicago, Boston and Dallas. Barneys also operates two regional full-price stores, fourteen CO-OP Barneys New York stores, and thirteen outlet stores, and also holds two semi-annual warehouse sale events.
"We are excited to acquire Barneys New York. We believe that the luxury market generally and the Barneys platform specifically have incredible growth prospects," said Khaled Al Kamda, Vice Chairman of Istithmar World.
Elaborating on the transaction, Istithmar's Chief Executive Officer, David Jackson, commented: "This investment will further our continued focus on the retail sector. We believe that we will be able to accelerate the growth of Barneys' business by leveraging our experience in the sector and other investments worldwide."
Howard Socol, President and Chief Executive Officer of Barneys, stated: "We are extremely pleased by this new development. The execution of our growth strategy over the past few years and the hard work and dedication of our talented employees has increased the value of our company and made Barneys attractive to Istithmar. This transaction further enhances our ability to develop our brand and grow our business." Mr. Socol continued, "Working with Istithmar, we look forward to continued expansion of our flagship, CO-OP and outlet concepts to help us realize the considerable untapped potential of the Barneys brand."
Peter J. Solomon Company and Citi acted as M&A advisors to Istithmar and Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Istithmar. Citi is providing committed financing for the acquisition and are taking an equity position.
Website: http://www.barneys.com/