Belk has announced that private equity firm Sycamore Partners will purchase 100 percent of the retailer in a deal valued at $3 billion.
The merger agreement was unanimously approved by Belk’s board of directors, the company said in a release, and is expected to completed in the fourth quarter of 2015.
Belk stockholders will receive $68 for each share of their stock.
“We are delighted to have found a financial partner that sees what we see in Belk: a 127-year-old brand that remains relevant today with exceptional customer loyalty in small, medium, and large cities throughout the South,” said chairman and CEO Tim Belk. “We plan to grow Belk by executing our current strategic initiatives and undertaking new growth initiatives together with Sycamore. This transaction is an across-the-board win for our stakeholders.”
“We have great respect for Belk’s management team and associates, its deeply rooted brand, its footprint of stores, and its growing online presence,” said Stefan Kaluzny, managing director of New York City–based Sycamore Partners. “Belk is exactly the kind of investment we look for: an outstanding brand with a proven success formula and the potential for further growth.”
Tim Belk will stay on as CEO and the company will remain based in Charlotte, N.C.
JCK reported in April that Belk, which operates 297 department stores in 16 Southern states, was considering a sale and working with Goldman Sachs to evaluate its options.