Jones Apparel to Buy Barneys for $294 Million
In its first foray into the luxury market, shoe and clothing marketer Jones Apparel Group Inc. is buying upscale clothier Barneys New York Inc. for $294.3 million in cash.
Barneys, which operated for two years in the late 1990s under bankruptcy protection, has been exploring its options for several months.
Under the deal, Jones, based in Bristol, Pa., will pay $19 a share to Barneys stockholders. In addition, it will assume about $106 million in Barneys debt.
The boards of both companies have approved the transaction, and stockholders of Barneys owning about 75% of its common stock have indicated that they support the deal.
Barneys shares fell $1.20 to $18.85 in over-the-counter trading Thursday, and Jones shares lost $1.06 to $34.92 on the New York Stock Exchange.