ARO LIQUIDATION INC (Reuters) - Fashion department store operator Belk Inc (>> Belk Inc) said it would be acquired by private equity firm Sycamore Partners in a deal valued at about $3 billion, including debt.
Sycamore, in its biggest ever deal, will pay $68 in cash for each share of Charlotte, North Carolina-based Belk, which operates 297 stores throughout the U.S. South.
Reuters reported in early July that Sycamore was preparing an offer for family-owned Belk at a price ranging between $3 billion and $3.5 billion, including debt.
Tim Belk will continue as Belk's chief executive officer of the 127-year-old company, Belk said on Monday.
The company also said certain shareholders representing a majority of voting power have agreed to vote in favour of the transaction.
Sycamore has investments in other retailers such as apparel makers Aeropostale Inc (>> Aeropostale Inc), Coldwater Creek and Hot Topic Inc [HTII.UL].
Goldman Sachs & Co is Belk's financial adviser, Bank of America Merrill Lynch is Sycamore's financial adviser. King & Spalding LLP is Belk's legal adviser and Kirkland & Ellis LLP Sycamore's legal adviser.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)
