Chico's FAS to Acquire Boston Proper for $205M

Chico's FAS, Inc. CHS announced today a definitive agreement to acquire Boston Proper Inc., a Boca Raton, Florida based privately held direct-to-consumer retailer of distinctive women's apparel and accessories. The $205 million transaction funded from available cash balances is expected to be immediately accretive to Chico's earnings in its first full year of operations before giving any consideration to potential synergies. Synergy opportunities include marketing, circulation and sourcing among others. Commenting on the acquisition, Chico's FAS CEO and President David Dyer said, "Boston Proper has grown and thrived by offering women daring, modern fashion with a sensual feel through compelling catalogs, direct marketing campaigns and its on-line channel. Boston Proper's brand focus is highly complementary to our existing brands' customer experience, adds significant volume to our direct-to-consumer channel and provides us new opportunities to grow market share. Boston Proper's talented management team can now accelerate its strategic initiatives to grow revenues and profitability by leveraging our capabilities."