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Express Channeling J. Crew Implies at Least 67% Buyout Premium 2014-06-13 16:50:37.797 GMT
By Tara Lachapelle June 13 (Bloomberg) -- Here’s what Express Inc. would look like strutting in J. Crew Group Inc.’s buyout shoes. Express, the clothing retailer targeting shoppers in their 20s, would be valued at $23 to $27 a share in a sale based on similar retail buyouts in recent history. That implies a premium of at least 67 percent. Private-equity firm Sycamore Partners, which took Hot Topic Inc. private last year, said yesterday that it’s interested in acquiring the 90.1 percent of Express that it doesn’t already own. The company had a market value of $1.14 billion as of yesterday and a $51 million net cash position as of last month. Buyers of U.S. clothing retailers in the past five years paid a median valuation of 9.3 times trailing 12-month earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg based on transactions larger than $500 million. That multiple would result in a takeover price of about $27 a share for Columbus, Ohio-based Express, giving it an enterprise value of $2.2 billion including Sycamore’s stake. Comparable transactions include the Hot Topic buyout, as well as deals for J. Crew Group Inc., Rue21 Inc. and Charming Shoppes Inc. The apparel chains were sold at a median 13 percent discount to trailing 12-month sales, data compiled by Bloomberg show. That suggests a slightly lower offer of about $23 a share for Express. Express’s stock rose 20 percent to $16.32 as of 12:41 p.m. New York time today, signaling investors expect to get bought out for at least that much. A deal at $23 a share would be a 67 percent premium to its average price in the 20 trading days through yesterday. On average, analysts estimate the shares will trade for only about $16 apiece in a year if the company isn’t acquired, data compiled by Bloomberg show. Leveraged buyouts have lost their popularity in the past year as U.S. stock indexes reached records. A Bloomberg News analysis found that public-to-private LBOs were just 6 percent of all U.S. private-equity deals this year through April, compared with an average of 50 percent over 10 years.
For Related News and Information: Express Soars After Sycamore Says It Plans Takeover Offer NSN N73VNO6JIJUQ<GO> Express Tumbles as It Cuts Forecast, Plans to Close Stores NSN N6EM6Y6TTDSB <GO> Carlyle to TPG Grab Discarded Company Assets as LBOs Slump NSN N5O3GM6S972J<GO> Express acquisition news: EXPR US <equity> TCNI MNA <GO> Real M&A columns: NI REALMNA <GO> Top deal stories of the day: DTOP <GO>
To contact the reporter on this story: Tara Lachapelle in New York at +1-212-617-8911 or tlachapelle@bloomberg.net To contact the editors responsible for this story: Beth Williams at +1-212-617-2307 or bewilliams@bloomberg.net Whitney Kisling
Alstom Siemens/Mitsubishi Heavy offer for Alstom assets reportedly includes a €9B cash component and is nearing finalization
2014-06-13 14:56:29.821 GMT
By Andrew Frye and Lorenzo Totaro
June 13 (Bloomberg) -- The Italian government is
considering options for a public backstop to cover potential
shortfalls in bank capital ahead of European stress tests in
October, two people with knowledge of the plan said.
* Officials are considering multiple options, said the two
people who declined to be named because the review is
private.
* The government may set up a fully financed pool that would
be ready for use immediately or draw up the legal framework
without raising funds, said one of the people
* The government may also opt to do nothing, the person said
* Filippo Sensi, spokesman for Prime Minister Matteo Renzi,
didn’t return a call and a text message seeking comment
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For Related News and Information:
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To contact the reporters on this story:
Andrew Frye in Rome at +39-06-4520-6322 or
afrye@bloomberg.net;
Lorenzo Totaro in Rome at +39-06-45206326 or
ltotaro@bloomberg.net
To contact the editors responsible for this story:
Brian Swint at +44-20-7073-3444 or
bswint@bloomberg.net
2014-06-13 14:33:21.968 GMT
--HEATHER SMITH
-0- Jun/13/2014 14:33 GMT