Golden Gate Reports Stake in Ann Taylor Parent Ascena Retail
October 08 2015 - 5:50PM
Dow Jones News
Private-equity firm Golden Gate Capital disclosed a 9% stake in
Ascena Retail Group Inc. and said it is in early stages of
discussions with the apparel retailer on ways to create value for
shareholders.
Ascena, which owns several retail chains including Dress Barn
and Lane Bryant, had traditionally been known for serving the
retail markets for middle-aged and plus-size women. But the company
has further expanded by buying the parent of Ann Taylor earlier
this year and also has the tween line Justice.
In a regulatory filing, Golden Gate called Ascena's shares an
attractive investment that is significantly undervalued, adding it
sees a good opportunity to become a significant shareholder in a
"high-quality and well-managed business at a very attractive
valuation."
Ascena shares climbed 5.6% to $14.99 after hours and have gained
13% so far this year through Thursday's close.
The private-equity firm, which has a long track record as an
investor in retailers, said it hopes to help Ascena achieve its
"substantial potential as a public company."
A representative from Ascena wasn't immediately available for
comment.
Golden Gate beneficially owns 17.5 million shares in the
company, making it the largest shareholder, according to
FactSet.
Ascena reached a deal to buy Ann Inc., the parent of Ann Taylor,
in May for about $2 billion. Golden Gate was an investor at Ann as
well and last year made similar comments about that company being
an attractive and undervalued investment. The firms signed a
nondisclosure pact last fall.
Golden Gate's other retail investments have included Express
Inc., Zale Corp. and Eddie Bauer.
Write to Lauren Pollock at lauren.pollock@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 08, 2015 17:35 ET (21:35 GMT)
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