Belk Acquired By Sycamore Partners

Belk, which has been a family owned and operated department store chain, has announced it is entering into a definitive merger agreement that will lead to its acquisition by private equity investment firm Sycamore Partners. In the deal, the investment firm will acquire 100% of Belk assets in a transaction valued at approximately $3 billion at closing.

Under the terms of the merger agreement, Belk stockholders will receive $68 per share in cash for each share of the retailer's common stock they own.

Belk owns and operates about 300 Belk stores located in 16 of the southern United States as well as an e-commerce business. Under the terms of the transaction, Tim Belk will remain as the retailer's CEO, and the company will maintain its Charlotte, NC, headquarters.

In announcing the acquisition, Belk said, "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. 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."

The merger agreement was unanimously approved by Belk's board of directors. The merger is subject to certain customary conditions, including regulatory and stockholder approval, and is expected to be completed in the fourth quarter of 2015.