Sycamore Partners and Belk have finalized an agreement for the firm to acquire the 127-year old retail chain for $3 billion.
The deal closed last week but shareholders of Belk, primarily family members, approved the transaction last month, reported the Charleston Post and Courier.
Until the buyout, Belk had the largest family-owned and operated department store, totaling 300 locations and $4 billion in annual sales.
Plans to sell the brand began in August of 2014 when senior executives began to build a three-year operating plan. During talks, strategic alternatives, such as a sale, were explored as the retailer could no longer compete with specialty retailers.
Sycamore is no stranger to the retail buy out, as it owns stakes in brands such as Aeropostale, Nine West, Jones New York and Talbots. Sycamore Partners recently made headlines for agreeing to purchase 330 Family Dollar stores and then rebanner a handful of Family Dollar (NYSE:FDO) stores upon completion of the acquisition by Dollar Tree (NASDAQ:DLTR) for $8.5 billion.
After the changeover, Charlotte will remain the company's headquarters and Belk does not anticipate any layoffs or store closings.
"Our partnership with Sycamore will contribute to Belk's continued success, and we look forward to leveraging Sycamore's deep knowledge of the retail market to best serve our dedicated customers and provide even greater opportunities for our valued team members," CEO Tim Belk told the Charleston Post and Courier.
-See this Charleston Post and Courier article
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