Bristol, Pa., Jones Apparel Group Inc. said Friday it completed the sale of its Barneys New York Inc. luxury unit and plans to use some of the proceeds to fund a $400 million stock buyback.
Jones received $945 million in cash from an affiliate of Istithmar PJSC, a Dubai-based private-equity firm that outbid the Japanese conglomerate Fast Retailing. After expenses and taxes, Jones Apparel received $840 million from the sale.
In addition to the stock buyback, Jones said it will use the proceeds to repay short-term borrowings. It acquired Barneys in 2004 for $400 million.