Deal Flow

Inside the world of M&A, IPOs, and Venture Capital

Justin Hibbard
BUSINESS DIRECTORY
Find local experts in:

« A deal about nothing | Main | Deal volume rises, but number of deals takes a dive »

January 31, 2007

Texas Pacific has great run with J Crew

Steve Rosenbush

Private equity giant J Crew acquired apparel retailer J Crew for $390 million in 1997, according to market researcher Dealogic. Last year, J Crew sold 44% of the company to the public in an offering that valued the enterprise at $1.2 billion. Texas Pacific reduced its holdings in a secondary offering this week, but still retains a 36% stake in the company. The public portion of J Crew has a market cap of $2.1 billion. Texas Pacific made an astute move back in 1997 by hiring CEO Mickey Drexler away from The Gap. J Crew has prospered, so much so that Texas Pacific invested an additional $73 million in the operation last year. The Gap has been on the ropes and has ousted CEO Paul Pressler. A focus on strong management and long-term patient exit strategy have paid off for TPG.

05:37 PM

M&A

Trackback Pings

TrackBack URL for this entry:
http://blogs.businessweek.com/mt/mt-tb.cgi/

Comments

Post a comment






 


Copyright 2000-2009, Bloomberg L.P.
Terms of Use   Privacy Notice