Ann Taylor The Parent Company Was Bought By Rival Ascena.

According to the agreement, Ascena group concluded a takeover paction with 80% cash and 20% shares. It is expected that the combination will effectively save annual expenditure of $150 million and will be implemented in three years.

The combination of apparel retailers Ascena and Ann Inc. will create a value of US $7 billion 300 million, with more than 4900 stores.

This will give Ascena group a better competitive position and be closer to the size of professional retailers like L Brands and Gap Inc..

The takeover news was released on Monday morning, which led to Ann Inc.'s share price rise of nearly 20%, or $7.69 per share, but apparel retailer Ascena declined 1%, or $0.14 per share, closing down to $14.06.

The Ann Taylor and Loft brands positioned in the middle and upper modern fashion models will effectively enhance the Ascena group's fashion image.

Ascena group includes five brands: Lane Bryant, Dressbarn, Maurices, Catherines and Justice.

At present, the Ascena group has begun to upgrade, and in some cases will cooperate with designers and new commodity marketing businesses.

"Every brand has its own strategy, even though they can learn from each other," said David Jaffe, chairman and chief executive officer of Ascena group.

We will share all our ideas.

Clearly, we are building a portfolio. "

According to the company's relevant information, the paction has been recommended by the board of directors of Ann Inc., but it still needs approval from the shareholders.

Ascena group includes five brands: Lane Bryant, Dressbarn, Maurices, Catherines and Justice.

According to the relevant research data of Ascena group, almost none of the group's brand consumers is the audience of Ann Taylor brand.

The brand occupies only a small part, and the two brands do not coincide with the consumers of Lane Bryant and Catherines, which sell large size code size clothing.

David Jaffe believes that this fully reflects that this paction is a good match.

According to Ascena group's data, the synergy effect of the two companies will be achieved through five steps: building up the procurement framework, implementing the procurement process, pportation, distribution and logistics.

After this paction, the company insiders will be mobilized.

Kay Krill, chairman and chief executive of Inc., will report to David Jaffe after the formal completion of the paction. The relevant affairs will be implemented in the second half of this year.

She believes that being a member of the Ascena group will hopefully further enhance and develop the business of their brand.

The former president of Ann Taylor Brian Lynch has become the president and chief executive of Justice brand last year.

However, analysts believe that Ann Inc. may not be the last of Ascena group.

Object.

Jaffe said during the interview, "we are looking for brands that can really resonate with our consumers.

The brand with good positioning and the brand that we think can be controlled and expanded, such as Ann Taylor and Loft, is the gap of our existing brands, which can help us enter the new diversified business field.

Loft is seen as the potential for more stores, and the growth rate of Ann Taylor stores has begun to slow down for the two brands newly incorporated into the group.

When asked how Ann Taylor will improve growth, Jaffe said, "maybe it is not through more stores, but through online sales and international channels."

We do not commit ourselves at this point. "

Ann Inc.'s Lou & Grey brand was first launched last year, but Jaffe thinks it is a test for the time being, but is looking forward to seeing how it continues.