True Religion to be sold to TowerBrook for $835 million
High-end jeans seller True Religion Apparel Inc. will be sold to investment firm TowerBrook Capital Partners for $835 million, the companies said.
The Vernon, Calif., designer denim brand, known for pricing its products well into the three figures, said its board unanimously accepted the $32-a-share offer.
The deal represents an 8.7% premium on Thursday’s $29.44-a-share closing price and a 52% increase from the stock price on Oct. 9, the day before True Religion disclosed that it would explore strategic alternatives for the company.
On Friday, True Religion shares were halted in New York after closing up 3.2% the day before.
The arrangement with TowerBrook, which is based in New York and London, is expected to close in the third quarter if True Religion shareholders sign off.
The apparel maker, which sells jeans in boutiques as well as in 124 eponymous U.S. stores and 31 international locations, was founded in 2002 by Jeff Lubell.
In March, two weeks after the company declined to renew his contract, Lubell stepped down as chief executive, chairman and creative director.
He was given a role as chairman emeritus and creative consultant instead.
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