Sycamore Takes Dept. Store Chain Belk Private for $2.7B

CHARLOTTE, NC—Department store operator Belk Inc. said Monday it had agreed to be acquired by private equity firm Sycamore Partners in an all-cash deal for $68 per share, or about $2.7 billion. The deal gives Belk, which operates nearly 300 stores across 16 Southern states, an enterprise value of approximately $3 billion.

Tim Belk will remain CEO of Belk and the company will continue to be headquartered in Charlotte. “We are delighted to have found a financial partner that sees what we see in Belk: a 127-year-old brand that remains relevant today with exceptional customer loyalty in small, medium and large cities throughout the South,” says Belk. “We plan to grow Belk by executing our current strategic initiatives and undertaking new growth initiatives together with Sycamore.”

At New York City-based Sycamore, managing director Stefan Kaluzny says the family-owned department store chain is “exactly the kind of investment we look for: an outstanding brand with a proven success formula and the potential for further growth.” Sycamore's other investments in the retail sector have included Talbots Inc., Nine West Holdings and the intellectual property assets of Coldwater Creek, which it relaunched as an e-commerce site in November 2014.

Goldman Sachs is acting as financial advisor and King & Spalding LLP is acting as legal advisor to Belk. For Sycamore, BofA Merrill Lynch is acting as financial advisor and Kirkland & Ellis LLP is acting as legal advisor. The acquisition is expected to close in the fourth quarter.