Sycamore Partners agrees to buy retailer Talbots for $193.3 million

The struggling women’s clothing chain Talbots Inc. is being taken private by Sycamore Partners for about $193.3 million in cash, an abrupt turnaround after buyout talks appeared to stall last week.

Talbots said Thursday that its stockholders will receive $2.75 a share, which is less than the $3.05 a share previously offered by the private equity firm but more than double Talbots’ Wednesday closing price of $1.29. It’s also a 76% premium to the closing price Dec. 6, when Sycamore made its first offer of $3 a share.

Including debt, the companies value the transaction at about $369 million.

Talbots shares closed Thursday up $1.15, or 89%, at $2.44.

Talbots said last week that a deadline expired on its exclusive talks with Sycamore without a deal in place. Sycamore had told Talbots that it wasn’t prepared to execute a transaction at that time. Talbots said it remained open to pursuing a transaction with Sycamore but since the exclusivity period had expired, it would explore other options.

Talbots has struggled for some time, posting annual losses in four of the last five years. The Hingham, Mass., company tried to reverse its downward spiral by cutting jobs, closing stores, lowering inventory, limiting marketing spending and trimming employee hours as it considered its strategic alternatives.

Talbots’ board has approved the acquisition by Sycamore, which is expected to close in the third quarter.

The retailer had 516 stores in 46 states and Canada at the end of the first quarter.