Golden Gate buys into listed womens fashion retailer Ann Inc

575

San Francisco-based private equity firm Golden Gate Capital has acquired a 9.5 per cent stake in New York-listed womens’ clothing retailer Ann Inc.

“We believe that Ann is a great business, with a thoughtful strategy, led by an extremely competent management team who has a long track record of success,” the firm said

Ann Inc is the parent Company of Ann Taylor and Loft, two of the largest women’s specialty retail fashion brands in North America. It operates 1,025 Ann Taylor, Ann Taylor Factory, Loft and Loft Outlet stores.

Following the deal Golden gate is now the company’s largest shareholder. The company saw improvement in net sales, comparable sales and gross margin rate in its most recent quarterly report.

Golden Gate invests across six strategic industry verticals: software, semiconductors and IT hardware, retail and restaurants, industrials, business and information services, and financial services. Currently, it holds investments in more than 35 companies

In addition, the firm manages strategic investments via a dedicated specialty finance company capitalised with over $2bn. This provides financing to the firm’s own investments, as well as other companies

The firm said, “On occasion, Golden Gate may also invest in publicly traded companies within our vertical markets, either directly or via a structured equity investment. We focus our investments in public companies on situations where we view these companies to be meaningfully undervalued based on our deep industry experience.”

Copyright © 2014 AltAssets

Get the latest PE News & Research delivered to your inbox every morning