Istithmar Wins Barneys Bid
The bidding war for Jones Apparel Group’s Barneys New York division has ended with Dubai-based Istithmar landing the upscale retail chain for $942.3 million in cash.
The negotiations for Barneys intensified in recent days as Jones entertained competing offers from the Dubai-based private-equity and investment house and Tokyo-based Fast Retailing Co. Ltd.
On Aug. 5, Istithmar matched Fast Retailing’s $900 million offer for the upscale retail chain. Fast Retailing responded on Aug. 6 with an amended offer of $950 million.
Under terms of the original agreement struck in June between Istithmar and Jones, the New York–based manufacturer could consider other offers for Barneys until Aug. 11. But if Jones accepted another bid, it would be obligated to pay a $22.7 million termination fee to Istithmar. On Aug. 8, Jones announced plans to take Isthithmar’s latest deal, giving Fast Retailing one day to make a counteroffer. On Aug. 9, Fast Retailing withdrew its offer to purchase Barneys.
With the purchase, Istithmar becomes the owner of Barneys’ flagship stores in New York, Beverly Hills, Chicago, Boston and Dallas, two regional full-price Barneys stores, 14 CO-OP Barneys New York stores and 13 outlet stores. —Alison A. Nieder
