THE DEAL: Ascena Retail Group, owner of Dressbarn and other brands, is purchasing Lane Bryant owner Charming Shoppes Inc. for approximately $890 million. Ascena will pay $7.35 for each Charming share, a 25 percent premium to the company's Tuesday closing price of $5.90.
THE TIMETABLE: Both companies' boards have approved the buyout, which is targeted to close in the second quarter. Charming will become an Ascena subsidiary once the transaction is complete.
RETAIL EMPIRE: Charming also runs Fashion Bug, Catherines Plus Sizes and the direct marketing business Figi's. Aside from Dressbarn, Ascena also owns the Maurices and Justice brands.