J. Crew's hip private equity deal

Posted Jan 29th 2007 1:30PM by Tom Taulli
Filed under: Private Equity, Gap Inc (GPS)

J.Crew Group, Inc. (NYSE: JCG) announced that one of its major shareholders would sell roughly 9 million shares of its common stock at $37.81 per share. The reason? Its private equity investor, Texas Pacific Group, is continuing to cash-out its position. The sale will not directly benefit J. Crew.

No doubt, J. Crew has had a strong performance lately, with same-store sales growth of 8.5% during the Christmas season.

All in all, it's been a smart deal for Texas Pacific Group, which apparently has made about a 7X return on its investment. (This is according to a story in TheDeal.com [subscription].) It certainly helped that J. Crew hired Millard Drexler, who once served as the CEO of Gap (NYSE: GPS).

But this deal was not a quick flip for Texas Pacific Group. It took a lot of work and was a nine year process.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Tags: gps, J. Crew, J.Crew, jcg, private equity, PrivateEquity, Texas Pacific Group, TexasPacificGroup

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Reader Comments (Page 1 of 1)

1-30-2007 @ 1:16PM

Gary E. Sattler said...

Hello Mr. Taulli,

Can you recommend the best place to buy your book, The Edgar Online Guide to Decoding Financial Statements?

I think it will be an excellent learning tool.

Thanks!