Retailers, buyout shops and investors are getting together their fall wardrobes.
Canadian yoga outfitter Lululemon Athletica Inc. priced its initial public offering Thursday at $18 per share, above its latest $15 to $17 range, and raised $327.6 million, an underwriter told Reuters Thursday. Shares opened at $28.99 in Toronto Friday, rose to a high of $29.47 and were trading at $28.62 apiece early afternoon, yielding high returns for its investors Advent International, Highland Capital Partners and founder Dennis Wilson.
Also Thursday, VF Corp., which makes Lee and Wrangler jeans, announced plans to acquire designer jean maker Seven For All Mankind LLC for $775 million from Bear Stearns Merchant Banking, the larger of two deals the retailer unveiled. Bear Stearns is flipping Seven a little more than two years after investing nearly $100 million for a 50% stake, and it will roughly triple its money. VF's other target, Lucy Activewear, books about $57 million of revenue and went for $110 million. But it's not all lofty exits and splashy IPOs.
Also Friday, teen specialty retailer Deb Shops Inc. agreed to a $395 million buyout from a Lee Equity Partners LLC affiliate, at just a 2% premium to its' close a day earlier. —Carolyn Murphy
VF goes shopping
Go to Reuters story on Lululemon
Deb Shops OKs Lee Equity buyout
Tags:
retail, Seven For All Mankind,
private equity,
Bear Stearns Merchant Banking and Lululemon
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