The sale of Cranberry teen clothing retailer rue21 to a private equity investor has been completed, and the company's stock will stop trading on the Nasdaq market today, according to an announcement by the two parties.
The sale valued at about $1.1 billion hit some bumps along the way, as rue21 dealt with declining sales and the company worked to complete financing for the deal.
In late September, the company disclosed in a filing with the Securities and Exchange Commission that sales in stores open at least a year had dipped 12.8 percent in September to date. The company said it was releasing the information because the data might be provided to "prospective lenders in connection with the financing" of the sale.
Shareholders voted in September to accept the offer by Apax Partners for $42 a share. The company's shares had been trading around $34 when the planned sale was announced in May.
Rue21, which offers affordable fashion and often opens stores in underserved markets, has 982 stores in 47 states.
London-based Apax Partners was already an investor in the company when it made the offer. Funds associated with Apax have acquired all of rue21's outstanding shares, according to the announcement today.
Committed debt financing for the transaction is being provided by BofA Merrill Lynch, J.P. Morgan and Goldman Sachs, the announcement said.
Teresa F. Lindeman: firstname.lastname@example.org or at 412-263-2018. First Published October 10, 2013 9:30 AM