CHARLESTON, SC (WCSC) - Belk, Inc. announced Monday it agreed to a sale of its company to Sycamore Partners in a deal valued at $3 billion.
"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," Belk Chairman and CEO Tim Belk said in a statement.
Sycamore Partners is a New York-based private equity firm that specializes in retail and consumer investments. Among the stores in its portfolio are Aeropostale, Coldwater Creek, Hot Topic, Nine West, Talbots and Torrid.
"We have great respect for Belk's management team and associates, its deeply rooted brand, its footprint of stores and its growing online presence," Stefan Kaluzny, Managing Director of Sycamore Partners, said. "Belk is exactly the kind of investment we look for: an outstanding brand with a proven success formula and the potential for further growth."
Under the terms of the merger agreement, all Belk stockholders will receive $68.00 per share in cash for each share of Belk common stock they own. Tim Belk will remain CEO of Belk and the company will continue to be headquartered in Charlotte, according to a release from the company.
"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," Belk said in his statement.
Belk is the nation's largest family owned and operated fashion department store company.