Japanese giant Fast Retailing is in talks to buy US retailer J.Crew.
Run by CEO Mickey Drexler, J.Crew is a multi-channel retailer of women’s, men’s and children’s apparel, shoes and accessories. The company operates 330 retail stores, including 257 J.Crew retail stores, eight crewcuts stores and 65 Madewell stores.
The acquisition could value J.Crew, owned by TPG Capital and Leonard Green & Partners LP, at as much as $5 billion.
The plan would speed up Fast Retailing’s goal to become the world’s largest retailer. The company, which operates 1277 Uniqlo stores in Asia and nearly 20 in the US, reported a 90 billion yen ($918 million) net profit in 2013. It also operates brands including GU, Theory, Comptoir des Cotonniers, Princesse tam.tam and J Brand.
“Uniqlo has expanded overseas by opening stores and acquiring and absorbing businesses that have designing power and brand image,” said Mikihiko Yamato, deputy head of research at JI Asia.
“Having J. Crew would help as it’s the brand people know and that can attract a lot more customers than doing it alone.”
J.Crew is also said to have been weighing an initial public offering later this year.
Fast Retailing’s talks with J.Crew is still at nascent stage. Buyout fund Advent International Corporation has also been reported to have expressed interest in J.Crew.
