J. Crew Agrees To Be Acquired By TPG Capital And Leonard Green & Partners

Oppenheimer has published a research report on J. Crew Group JCG and has upgraded the company from Not Rated to Outperform. In the report, Oppenheimer writes "JCG agreed to be acquired by TPG Capital and Leonard Green & Partners, L.P., for $43.50/share or about $3B (a 16% premium to prior day's close). Under terms of the agreement it can receive other offers through 1/15/11. In conjunction with the announcement, disappointing FY3Q10 results and 4Q outlook were provided. However, long-term growth drivers remain intact, including domestic and international ramp (core and new concepts), Madewell, recently introduced factory on line and wedding divisions, strong senior management and a robust balance sheet. We are removing our Outperform rating and $50 PT reflecting the announced transaction and subsequent stock movement." Oppenheimer has also issued a new $50 price target on J. Crew Group, which closed yesterday at $43.99.