Charming Shoppes to acquire Crosstown Traders for $218 million

In a move to add a major catalog operation to its holdings, women’s apparel retailer Charming Shoppes Inc. has agreed to acquire web and catalog merchant Crosstown Traders Inc. for $218 million in cash from JPMorgan Partners, the private equity arm of J.P. Morgan Chase & Co., Charming Shoppes said.

"This is a significant milestone in Charming Shoppes` transformation into a multi-channel retailer, and provides us with a highly profitable platform through which we can increase shareholder value," said Dorrit J. Bern, chairman, CEO and president of Charming Shoppes.

The acquisition, which is expected to close by July 31, the end of Charming Shoppes’ fiscal second quarter, would make the expanded company the 112th largest online retailer with $49.7 million in e-commerce revenues, according to the 2005 edition of the Internet Retailer Top 400 Guide of online retailers.

Crosstown Traders, which claims 4 million active customers, sells women’s apparel under several brands including Old Pueblo Traders, Bedford Fair Shoestyles, Regalia and Monterey Bay Clothing. It also sells food and gifts through Figi’s, a former unit of Federated Department Stores Inc. Crosstown will continue to operate as a separate entity based in Tuscon, AZ.

Steven Lightman, who will remain as president of Crosstown Traders, said Crosstown will be able to capitalize on its new parent’s broad market reach. “The opportunity to utilize their customer database of 29 million customer names, and the ability to leverage Charming Shoppes` expertise in direct sourcing will provide Crosstown Traders with the resources necessary to further accelerate its growth and expand its profit margins," he said.

Banc of America Securities LLC acted as exclusive financial advisor to Charming Shoppes. Goldman, Sachs & Co. and GLC Securities Corp., an affiliate of Gruppo, Levey & Co., advised Crosstown Traders.