Lee Equity Partners LLC snaps up small-cap teen retailer Deb Shops, Inc.
Deb Shops, Inc. (Nasdaq: DEBS), a Philadelphia-based teen retailer, announced it's being bought by Lee Equity Partners LLC for $27.95, or approximately $395 million. The acquisition price represents a modest 2.1% premium from Thursday's closing price of $26.68.
"We think it's a terrific platform that is under-penetrated in the U.S. and offers a significant new store rollout opportunity," Ben Hochberg, a partner at Lee Equity Partners, said in a statement.
There will be no layoffs among Deb's 3,500 employees who work at the company's 337 outlets.
Deb Shops' CFO Barry Susson said he believes the price was "very fair."
The company's same-store sales fell by 3.3% in fiscal 2007, which ended in January. In fiscal 2006, same-store sales were up 7%.
In late afternoon trading, shares of the small-cap company are up $0.06, or 0.22%, at $26.74.
