Mothers Work to Acquire A Pea in the Pod in $23.9 Million Deal

Strategic Insights -

Mothers Work, Inc., a leading specialty retailer of upscale maternity clothing, has entered into a definitive agreement to acquire A Pea in the Pod, Inc. for $23.9 million, or $5.50 per share. The acquisition, which has been unanimously approved by the boards of directors of both companies, will allow Mothers Work to expand its presence in the maternity wear market. Under the agreement, a subsidiary of Mothers Work will make a tender offer for all outstanding shares of A Pea in the Pod, and the remaining shares will be converted into the right to receive the cash price per share paid in the offer.

Key Takeaways:

  • Mothers Work will acquire A Pea in the Pod for $23.9 million, or $5.50 per share, in cash.
  • The acquisition has been unanimously approved by the boards of directors of both companies.
  • The offer is subject to the tender of a majority of A Pea in the Pod's outstanding shares and receipt of financing described in the agreement.
  • Certain shareholders of A Pea in the Pod, with a combined 1,138,564 shares (approximately 27.8% of outstanding shares) have entered into an agreement to tender their shares to the purchaser in the offer.
  • The offer will be made only pursuant to the definitive offering documents, which will be filed with the Securities and Exchange Commission and mailed to A Pea in the Pod shareholders.
  • Mothers Work is the leading specialty retailer of upscale maternity clothing, with 190 stores across the country and 91 Mothers Work stores, 66 Mimi Maternity stores, and 33 Maternity Works outlet stores.
  • A Pea in the Pod is a leading specialty retailer offering a full line of fashionable, quality apparel and accessories for the maternity customer, with 66 stores in 28 states of the United States.

Statistics:

  • Number of stores operated by Mothers Work: 190
  • Number of stores operated by A Pea in the Pod: 66
  • Total value of the acquisition: $23.9 million
  • Cash price per share paid in the offer: $5.50

Sources:

  • PRNewswire, "Mothers Work, Inc. and A Pea in the Pod, Inc. Announce Agreement," March 6, 1995.
  • Investors Business Daily, "Mothers Work plans to buy A Pea in the Pod in $23.9 million deal," March 6, 1995 (not cited in the original, but reported on March 6).