Merger includes 908 Justice apparel stores
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Dress Barn Inc. (Suffern, N.Y.) plans to buy teen-apparel seller Tween Brands Inc. (New Albany, Ohio), which operates the Justice retail chain, for about $157 million in stock to help the women’s clothing retailer capture a larger share of the tween market.
According to both companies, Tween Brands will operate as a separate unit and its management team will continue to manage operations and lead the brand’s future growth.
"The Justice concept, which offers an attractive mix of well-priced fashion for girls aged 7 to 14, will diversify and complement our existing business," says David Jaffe, Dress Barn president and ceo.
Dress Barn will also pay Tween Brand's net outstanding debt of $80 million. The company says it expects the deal to be neutral to earnings in the first full year of combined operations and add to profit thereafter.
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