NY private equity firm buying Belk for $3B

Posted August 24, 2015 9:57 a.m. EDT

— The Belk family has agreed to sell its eponymously named department store chain to a New York investment group for about $3 billion.

Investment funds managed by private equity firm Sycamore Partners will acquire 100 percent of Charlotte-based Belk for $68 per share. Belk has been the nation's largest family owned and operated department store chain.

"We are delighted to have found a financial partner that sees what we see in Belk: a 127-year-old brand that remains relevant today with exceptional customer loyalty in small, medium and large cities throughout the South," Belk Chairman and Chief Executive Tim Belk said in a statement. "We plan to grow Belk by executing our current strategic initiatives and undertaking new growth initiatives together with Sycamore. This transaction is an across-the-board win for our stakeholders."

Under the terms of the transaction, Tim Belk will remain CEO of Belk, and the company will continue to be headquartered in Charlotte.

"We have great respect for Belk's management team and associates, its deeply rooted brand, its footprint of stores and its growing online presence," Stefan Kaluzny, managing director of Sycamore Partners, said in a statement. "Belk is exactly the kind of investment we look for: an outstanding brand with a proven success formula and the potential for further growth."

The buyout is expected to be completed later this year.