Polo Ralph Lauren Buying Canadian Retailer

Polo Ralph Lauren confirmed week-old rumors that the classic clothes designer and retailer is buying Canadian specialty retailer Club Monaco Inc. for about $52.5 million in cash, a deal that would more than double Lauren’s retail operation. Lauren said it will maintain Club Monaco, which sells trendy casual clothing similar to that of Gap Inc.’s Banana Republic, as a separate subsidiary to be run by its current management. Lauren operates about 30 Polo Ralph Lauren, Polo Jeans and Polo Sport stores and more than 70 outlet stores in the United States. Club Monaco operates or franchises about 125 stores under that name in Canada, the U.S., Japan, South Korea and other Asian countries. The deal, expected to close this spring, requires approval by Canadian regulators. Polo Ralph Lauren shares closed down 44 cents at $19.50 on the NYSE.