J. CREW - Infographic: Privately-Held Retailer Could Be Next "In" Fashion IPO; PrivCo-Estimated $5.25B IPO Value; 75% More Than Take-Private Price in 2011
· "J. Crew could use the IPO proceeds to pay down its heavy debt load and decrease interest expenses in order to increase cashflow.
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Hedgeye Retail Takeaway:
Takeaway: J. Crew went private in 2010 for $3 billion. A $5.25B price tag this time around would represent a 75% boost in value. What we find interesting is that J. Crew was on the tape in March as being bought by Fast Retailing for $5B, but the deal crumbled when FAST went through the numbers in detail (and shortly after, J. Crew released weak results).
Now it looks like CEO Mickey Drexler is getting his $5 billion price tag after all.
But we're not at a market top or anything.
