Chico's shareholders will receive $7.60 in cash per share, which stands at a 65% premium when compared to the company's closing stock price on 27 September 2023.

Commenting on the acquisition, the chair of Chico’s board, Kevin Mansell, said: "The agreement with Sycamore Partners validates Chico's FAS's leadership as a customer-led, product-obsessed, digital-first company with a strong record of operational excellence.

“The transaction reflects the Board's commitment to maximising shareholder value. It provides Chico's FAS shareholders with significant immediate cash value and creates exciting opportunities for employees of the company and our brands."

Chico’s FAS had received a revised offer from Sycamore Partners to acquire the company back in June 2019, with the private equity firm lowering its bid to US$3.00 per share in cash. At the time it said it would review the offer after already rejecting two higher-price offers months before.

Upon the successful conclusion of the latest transaction, Chico's common stock will no longer be listed on the New York Stock Exchange (NYSE).

Molly Langenstein, Chico's CEO and president said: "Through this investment, we are gaining additional expertise, financial resources and strategic flexibility to fuel the growth of our company and three powerful brands: Chico's, White House Black Market and Soma.

"Sycamore Partners has an outstanding record in the retail industry in partnering with management teams to help businesses reach even greater levels of success.”

Chico’s board of directors “unanimously” approved the acquisition with the transaction anticipated to conclude by the end of the first calendar quarter of 2024.

The advisors involved in this transaction include Solomon Partners, L.P., acting as the financial advisor to Chico's FAS, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, serving as the legal advisor. Kirkland & Ellis LLP is acting as the legal advisor to Sycamore Partners.