FINANCE

Bain Capital to Acquire Burlington Coat Factory

BY CSA STAFF

Burlington, N.J., Burlington Coat Factory Warehouse Corp. agreed to be acquired by a private investment firm. The 367-store chain said it signed a definitive merger agreement to be acquired by affiliates of Bain Capital Partners, LLC in a $2.06 billion deal.

Under terms of the agreement, Bain Capital will acquire all of the outstanding shares of Burlington Coat Factory Warehouse Corporation for $45.50 per share in cash, for a total consideration of approximately $2.06 billion. “We are thrilled that a transaction with Bain Capital delivers significant value to our stockholders,” said Monroe Milstein, Burlington Coat Factory’s Chairman, President and CEO. “We are very proud of what the Company has accomplished over the past 30 years.”

“Burlington Coat Factory is a well-managed retail business with a strong consumer following, high-quality product offerings, and good growth prospects,” said Jordan Hitch, a managing cirector at Bain Capital. “We are delighted to have the opportunity to partner with the experienced management team to build on the company’s track record of success in merchandising and store operations and to continue to grow the store portfolio.”

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Gap Outsources IT Operations to IBM

BY CSA STAFF

Armonk, N.Y., In a deal worth an estimated $1.1 billion, Gap Inc. has hired International Business Machines Corp. (IBM) to operate parts of its information technology structure. Gap said in a Securities and Exchange Commission filing that the deal, reached Friday, is non-exclusive. IBM will streamline Gap’s information-technology operations and provide help-desk and disaster-recovery services. IBM is expected to take on about 400 Gap employees.

The retailer said the agreement has an initial term of 10 years.

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American Eagle Looks East

BY CSA STAFF

New York City, American Eagle Outfitters Inc. will enter Japan in 2007. The company sees the potential for 100 stores in the Japanese market. It plans to use the country as a springboard for expansion in other parts of Asia.

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