The Children’s Place Retail Stores, Inc. plans to acquire the Disney Store chain in North America.
The Children’s Place did not disclose the price it will pay for the 313 stores but did say that it plans to invest $100 million in the remodeling and operations of the stores.
Under the terms of the deal, The Children’s Place will acquire the chain in exchange for a working capital adjustment payment at the close of the transaction.
In addition, the companies signed a long-term licensing deal where the stores will begin paying royalties on the second anniversary of the deal.
The Disney Store will continue to manufacture and sell Disney-branded merchandise at the stores.
The companies said that the Disney Store profile is “strikingly” similar to that of The Children’s Place in that the two are mall-based, vertically integrated specialty retailers with comparable customer demographics.
“This exciting and unique opportunity gives us instant access to one of the most magical brands in the world, and is consistent with our goal of being the leading retail player in the newborn to age 10 category,” Ezra Dabah, chairman and CEO of The Children’s Place, said in a statement.
The Children’s Place is a specialty retailer of apparel and accessories for children. It operates 725 stores, including 674 in the U.S., 49 in Canada and two in Puerto Rico.
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