NBC affiliate WCNC reports that fashion department store Belk announced it has entered a merger agreement with Sycamore Partners.
The Charlotte-based department store chain said Monday it has agreed to be purchased by New York-based private equity firm Sycamore Partners for $3 billion.
"We are delighted to have found a financial partner that sees what we see in Belk: a 127-year-old brand that remains relevant today with exceptional customer loyalty in small, medium and large cities throughout the South," Chairman and Chief Executive Officer of Belk Tim Belk said. "We plan to grow Belk by executing our current strategic initiatives and undertaking new growth initiatives together with Sycamore. This transaction is an across-the-board win for our stakeholders."
Under the terms of the transaction, Tim Belk will remain CEO of Belk and the company will continue to be headquartered in Charlotte.
The merger agreement was unanimously approved by Belk's board of directors. The merger is subject to certain customary conditions, including the receipt of regulatory and stockholder approval, and is expected to be completed in the fourth quarter of calendar 2015.
Certain Belk stockholders have agreed to vote shares owned or controlled by them representing, in the aggregate, a majority of the voting power of Belk's shares, in favor of the transaction.