Chico’s FAS becomes part of Sycamore Partners KnitWell Group

Private equity firm Sycamore Partners has announced the completion of its acquisition of Chico’s FAS in an all-cash transaction valued at approximately one billion dollars.

Following the acquisition, the apparel group is now a privately held company and part of KnitWell Group, a holding company created last year by the private equity firm that also includes apparel brands such as Talbots, Ann Taylor, and Loft.

"Joining the Sycamore portfolio of leading retail brands marks an important milestone for Chico's FAS and continues our journey as a customer-led, product-obsessed, digital-first, and operationally excellent company," said Chico's FAS CEO and president Molly Langenstein in a statement on the acquisition.

"Sycamore and Chico's FAS both share a commitment to providing solutions, building communities, and creating memorable experiences to bring women confidence and joy,” added Langenstein, who is set to remain onboard in her roles. “We look forward to working together to reach even greater levels of success."

The completion of the acquisition of the apparel group, which includes Chico's, White House Black Market, and Soma, comes after news broke last September that Sycamore Partners sought to purchase the apparel group for one billion dollars.

KnitWell Group becomes a 6 billion dollar women's retail specialty company

Under the agreed terms, Chico’s FAS shareholders received 7.60 dollars in cash for each share, marking a 65 percent premium over the stock's closing value on September 27, 2023.

"Completing this transaction represents the beginning of an exciting new chapter for the company's three iconic brands -- Chico's, White House Black Market, and Soma," said Stefan Kaluzny, managing director of Sycamore Partners, in a statement.

"We look forward to supporting the company's more than 14,000 talented associates as they continue to deliver best-in-class product assortments to their loyal customer base and help these brands reach their fullest potential."

With Chico's apparel group under its umbrella, KnitWell Group has become a 6 billion dollar in annual sales company within the women’s apparel sector. According to Lizanne Kindler, CEO and executive chair of Knitwell Group, the new acquisition of Chico’s FAS further facilitates the sharing of innovative strategies and best practices across brands.

“There is so much opportunity that comes with being part of this larger family of brands in terms of efficiencies and leverage that comes from size and scale with eight of the best retail apparel brands in the country. This is a great day, and we cannot wait to get started."

Comprising some of the most well-known women’s brands in the US, Knitwell Group also provides oversight and shared services to Lane Bryant, a plus-size women's apparel brand.