Arnold B. Zetcher, Talbots chairman, president and CEO, said inFebruary that the brands would maintain distinct identities in theevent of a merger. "Our current plan is to continue to operateseparately areas such as merchandising, stores, catalog, web,marketing, visual and store design," Zetcher said during theinitial announcement. "At the same time, we believe we will benefitindividually and collectively from the combined talent andexpertise of our dedicated associates in both organizations."

Under the agreement, Talbots will finance the transaction withamounts drawn under a new $400-million credit facility, as well ascash on hand. Talbots ended fiscal 2005 with 1,083 stores andrevenues of approximately $1.8 billion, while J. Jill finished theyear with 200 stores and approximately $450 million in revenues.Company execs expect the combined company, which will continue totarget women 35 and older, to generate annual revenues ofapproximately $2.3 billion from 1,283 stores located in 47 states,the District of Columbia, Canada and the UK.

Merrill Lynch & Co. acted as exclusive financial advisor toTalbots, and Peter J. Solomon Co. acted as exclusive financialadvisor to J. Jill. Dewey Ballantine LLP and Pitney Hardin LLPacted as legal advisors to Talbots, and Kirkland & Ellis LLPand Foley Hoag LLP acted as legal advisors to J. Jill.