The deal gives Talbots 200 additional stores and will bring its total to 1,283 units and is expected to increase annual revenues from $1.8 billion to $2.3 billion. Quincy, MA-based J. Jill, like Talbots, primarily targets women 35 years old and older, though its styles are more casual than its soon-to-be parent company.

The Talbots deal comes after two unsuccessful bids by New York City-based apparel giant Liz Claiborne. The company made a $17-per-share bid for J. Jill in March and then followed up with an $18-per-share offer in November.

"We are disappointed that we were unable to acquire J. Jill at a price that makes sense for our shareholders," says Paul Charron, Liz Claiborne's chairman and chief executive officer. "However, we are financially disciplined and will not overpay." Instead, Liz Claiborne will focus on expanding its own specialty-store division, which is expected by executives to open 125 stores this year, and includes such chains as Lucky Brand Jeans, Mexx and Sigrid Olsen.

Talbots and J. Jill executives plan to close the deal by the end of this year's second quarter. J. Jill will continue to operate under its name, and Talbots will keep the retailer's headquarters intact. Arnold Zetcher, Talbots' chairman, president and chief executive officer, says that J. Jill has "significant growth potential."