Ascena to acquire Charming Shoppes

Ascena Retail Group will acquire Charming Shoppes in a

cash transaction valued at approximately $890 million. Ascena has agreed to make a cash tender offer for all outstanding shares of Charming Shoppes common stock at a price of $7.35 per share. The tender offer is expected to commence within 10 business days. Subject to customary conditions and approvals, the transaction is expected to close during the second calendar quarter of 2012.

"Charming Shoppes is a superb strategic fit for Ascena," said Ascena president and CEO David Jaffe. "A key component of our growth strategy over the past several years has been to make highly selective and powerful acquisitions. We've built a family of retail brands, each serving a unique customer niche, with a culture that embraces the sharing of resources, new ideas and talented team members. Over the past few years, we have welcomed into our family new brands and new team members while delivering increasing value to shareholders. We believe that Charming Shoppes will be no exception."

Founded in 1940 and headquartered in Bensalem, Pennsylvania, Charming Shoppes is a leading apparel retailer specializing in women’s plus-size apparel. Charming Shoppes is the parent company of three distinct brands - Lane Bryant, Catherines Plus Sizes and Fashion Bug - and operates over 1,800 retail stores nationwide and store-related e-commerce websites. Charming Shoppes also operates Figi's, a direct marketing business. Ascena Retail Group, a retailer of apparel for women and tween girls, operates through its wholly-owned subsidiaries, the dressbarn, maurices and Justice brands. The company operates through its subsidiaries over 2,500 stores throughout the United States, Puerto Rico and Canada.