Dress Barn closes stock-for-stock deal to buy Tween Brands, owner of Justice brand
Associated Press
11/25/09 12:45 PM EST
SUFFERN, N.Y. — Dress Barn Inc. completed its merger of Tween Brands Inc. on Wednesday, giving Tween shareholders 0.47 shares of Dress Barn stock for each share of Tween.
Tween Brands, based in New Albany, Ohio, owns the Justice brand that caters to children from the ages of 7 to 14. It will now operate as a subsidiary of Dress Barn. Tween CEO Michael Rayden will run the unit and join Dress Barn's board.
Tween's shares were delisted from the NYSE and it is now free of bank debt, Dress Barn said. Tween and Dress Barn will continue to maintain separate headquarters.
Dress Barn, based in Suffern, N.Y., sells women's clothes through its namesake brand as well as Maurices.
Shares of Dress Barn rose 81 cents, or 3.8 percent, to $22.28 in midday trading.
