Summary Box: Ascena buying Charming Shoppes

AP News
Posted: May 02, 2012 12:38 PM
Summary Box: Ascena buying Charming Shoppes

THE DEAL: Ascena Retail Group, owner of Dressbarn and other brands, is purchasing Lane Bryant owner Charming Shoppes Inc. for approximately $890 million. Ascena will pay $7.35 for each Charming share, a 25 percent premium to the company's Tuesday closing price of $5.90.

THE TIMETABLE: Both companies' boards have approved the buyout, which is targeted to close in the second quarter. Charming will become an Ascena subsidiary once the transaction is complete.

RETAIL EMPIRE: Charming also runs Fashion Bug, Catherines Plus Sizes and the direct marketing business Figi's. Aside from Dressbarn, Ascena also owns the Maurices and Justice brands.