Seven-year-old J Brand was founded by CEO Jeff Rudes and has been a Star Avenue portfolio company since February 2010. Morgan Stanley began conducting a review of the business for its owners in around July, a source told The Deal at the time.
Yamaguchi City-based Fast Retailing,said J Brand had sales of $124.4 million and net profit of $17.8 million in 2011. As well as its core denim business, J Brand has expanded into leather and women's ready-to-wear.
Fast Retailing had sales of ¥928 billion ($11.2 billion) in the fiscal year ended August. Outside Japan it has stores in the U.S., the U.K., China, Hong Kong, South Korea, France, Singapore, Russia, Taiwan and Malaysia.
The Japanese company expects to spend $10 million on advisory fees connected to the acquisition, which it will fund through internal resources and possibly new bank loans.
Star Avenue currently owns 52% of J Brand, and Rudes holds 36%.
Management including Rudes will remain in place following closing, which is expected by year-end.
Star Avenue, which has offices in New York and Los Angeles, is a growth equity investor with a target investment size of $15 million to $25 million of equity. In September it invested an undisclosed sume in hair care brand Macadamia Natural Oil, of Chatsworth, Calif.
After the sale of J Brand, its only other portfolio company will be Maximum Human Performance, a sports nutrition company.
Jones Day said former AUSA Jack M. Williams joined its Atlanta office as a partner in the business and tort litigation practice. For other updates launch today's Movers & shakers slideshow.
The suitor said it would extend its tender offer until Dec. 31, suggesting that the battle isn′t going to be resolved in time for holiday shopping, if that matters. More video