TPG, Along With Leonard Green, To Buy J. Crew Again
More than a year after selling its remaining stake in J. Crew, TPG is set to own the preppy retailer again. Today, TPG, along with Leonard Green, agreed to buy J. Crew for $43.50 a share or roughly $3 billion. J. Crew CEO Millard Drexler is part of the deal and will maintain a "significant equity investment" in the company, according to a statement. Bank of America Merrill Lynch and Goldman Sachs are providing debt financing. The transaction isn't set in stone. Drexler reportedly wasn't happy with how TPG revamped the deal (TPG and Leonard Green were supposed to offer $45 a share as of last weekend but TPG reduced the offer to $43.50), Dealbook says. The deal announced Tuesday also includes a go-shop period where J. Crew can solicit other offers through Jan. 15. Drexler could join forces with a new bidder. If there is no superior offer, the sale is expected to close in the first half of 2011.
