The acquisition, expected by both companies to close in September, would give Chico’s 99 White House/Black Market stores, in 30 states; the District of Columbia; Puerto Rico; and Virgin Islands. White House also has an additional four stores under different brand names. Chico’s will spend $85.6 million in cash and $4.4 million in stock on the deal.
The deal was a long time in the making, Charlie Kleman, CFO of Fort Myers, Fla.–based Chico’s, told SCT Newswire. In its quest to expand, Chico’s had been in negotiations with Richard Sarmiento, founder, CEO and president of White House, for five years, he said.
White House/Black Market brings to Chico’s a different demographic, Kleman said, noting that the median age of White House customers is 35, while that of Chico’s is 53. Sarmiento opened his first store in 1985. Called The White House, it sold only white clothing and accessories. He then started another concept in 1995, Black Market, which offered black clothing. The two were combined in 1997.
White House filed with the Securities and Exchange Commission to go public in May, and Chico’s board decided to jump on the acquisition this month, when White House was expected to become a public company, Kleman said.
Chico’s says it will keep the White House/Black Market brand name and plans to open 25 to 30 new stores in the chain next year. Sarmiento will stay on as president.
Chico’s operates 371 Chico’s stores, 20 Chico’s outlets and 10 Pazo units in 42 states and the District of Columbia.