Chico’s FAS, the Florida-headquartered women’s apparel retailer, is to be taken over by private equity company Sycamore Partners in a $1 billion deal announced this morning. 

Sycamore will pay $7.60 per share, representing a 65 per cent premium over yesterday’s closing price of the stock. When the acquisition is complete, Chico’s will be delisted and become a private company. 

Chico’s was founded in 1983 by Marvin and Helene Gralnick who met in 1972 while living in Guadalajara, Mexico. They migrated to Florida and opened a small Mexican folk art boutique, which later evolved into a global fashion company.

Today, Chico’s operates 1258 stores across the US and its products are sold through 58 international franchisees. Its stable has grown to include the brands White House Black Market, and Soma and it has a payroll of 14,000. 

Sycamore specialises in retail assets and counts brands including Talbots, Hot Topic, Torrid, The Limited, Ann Taylor, Express and Staples in its portfolio. 

In a statement announcing the deal, Chico’s chair Kevin Mansell said the agreement with Sycamore “validates Chico’s FAS’s leadership as a customer-led, product-obsessed, digital-first company with a strong record of operational excellence”. 

“The transaction reflects the board’s commitment to maximizing shareholder value. It provides Chico’s FAS shareholders with significant immediate cash value and creates exciting opportunities for employees of the company and our brands.”

Sycamore MD Stefan Kaluzny said the company had “long admired” Chicos FAS and its brands. 

“We look forward to partnering with the company’s more than 14,000 talented associates to grow these brands by continuing to deliver excellent products and service to their devoted customers.” 

The parties expect the deal to be settled in the first quarter of next year.