Apax divests partial stake in rue21, inc.
4 March 2010
New York, NY, March 4, 2010 - Funds advised by Apax Partners
(the "Apax Funds") today announced the completion of the February
25, 2010 secondary public offering of 6,053,877 shares of common
stock of rue21, inc. (the "Company") (Nasdaq: RUE) at a price of
$28.50 per share. Upon settlement of the over-allotment option, the
Apax Funds will realize a 7.3x return on investment and continue to
retain meaningful ownership of the Company's shares.
The Apax Retail & Consumer group has worked closely with rue21,
inc., a specialty apparel retailer focused on offering the latest
fashion trends for consumers at value prices, to support its
growth. Since the Apax Funds' investment, the Company has expanded
its store base from less than 100 stores in 1998 to more than 535
stores across the United States today.
In the November 12, 2009 initial public offering, rue21 and
minority shareholders sold approximately 6.8 million shares at a
price of $19.00 per share. The Apax Funds did not sell shares in
On March 3, 2010, the underwriters exercised their over-allotment
option to purchase additional shares pursuant to which the Apax
Funds will sell an additional 908, 081 shares of rue21, inc. common
stock at a price of $28.50 per share.
The secondary offering will generate total proceeds to the Apax
Funds, net of underwriting commissions, of approximately $187
million. The Apax Funds will continue to own approximately 7.1
million shares of rue21, inc. common stock, or 29% of the
The successful rue21, inc. growth performance, IPO and subsequent
secondary offering was supported by Apax Partners' deep retail
sector expertise and reflects its ability to identify and develop
strong growth companies over the long-term. Funds advised by Apax
Partners have invested more than $3.4 billion of equity in retail
and consumer products businesses globally, including companies such
as Tommy Hilfiger, New Look, PVH/Calvin Klein, Tommy Bahama, Dollar
Tree Stores and Children's Place.
A registration statement relating to shares of rue21, inc. common
stock was declared effective by the Securities and Exchange
Commission on February 25, 2010. This press release shall not
constitute an offer to sell or a solicitation of an offer to buy,
nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be
Notes to editors
About Apax Partners
Apax Partners is one of the world's leading private
equity investment groups. It operates across the United States,
Europe and Asia and has more than 30 years of investing experience.
Funds under the advice of Apax Partners total over $40 billion
around the world. These Funds provide long-term equity financing to
build and strengthen world-class companies. Apax Partners Funds
invest in companies across its global sectors of Tech &
Telecom, Retail & Consumer, Media, Healthcare and Financial
& Business Services.
About rue21, inc.
rue21 is a leading specialty apparel retailer offering
exclusive branded merchandise and the newest trends at a great
value. As of February 25, 2010, rue21 operated 545 store locations
in 43 states. For further information, please contact:
For further information, contact:
Tel: +44 (0)20 7872 6401