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.
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Will Rich Ross really have a positive impact on Disney's movie operations?
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!