Stage Stores Inc. has completed its previously announced acquisition of Peebles Inc., a privately held, similarly focused retail company headquartered in South Hill, Va. The combination of Stage and Peebles creates a leading retailer of branded family apparel in small town America, with 514 stores in 27 South Central, Mid-Atlantic, Southeastern and Midwestern states, and annual sales approaching $1.2 billion.
The total cost of the acquisition, including certain transaction related costs, net of tax benefits, is estimated to be approximately $167 million. The Company also assumed the outstanding balance under Peebles' revolving credit facility of approximately $54.9 million. The Company intends to sell Peebles' private label credit card portfolio, which had a balance of approximately $33.8 million at closing, and use the proceeds to retire debt. In conjunction with the closing of the Peebles acquisition, the Company increased its existing revolving credit facility commitment from $175 million to $250 million.
Jim Scarborough, chairman, president and chief executive officer of Stage, commented, “The acquisition of Peebles represents an outstanding opportunity for us to join forces with a strong, successful and similarly focused retail company as we expand our geographic footprint. We believe the strategic, operational and economic potential of this business combination is exceptional and should result in enhanced value for our shareholders, our customers, our employees and our suppliers.”
