As per the agreement, TowerBrook will assume all of the outstanding shares of the apparel firm’s common stock for $32 per share in cash, representing a rate of 52% to its share price on 9 October 2012.
With this acquisition, the company is looking to expand its retail portfolio consisting of Jimmy Choo, Odlo, Bevmo! and Phase Eight.
TowerBrook managing director Andrew Rolfe said that True Religion is a well positioned and high-end brand with a strong retail
"We are excited to combine our retail and apparel expertise with Lynne and the True Religion team to help the company with brand building and international opportunities," added Rolfe.
True Religion operates 124 stores in the US and 31 international stores.
The sale is in line with its previous announcement made in October 2012 stating that it is mulling over strategic options with potential offers pouring in from third parties.
True Religion lead director Seth Johnson stated that the company has concluded the agreement that ensures potential return cash value for its shareholders after a thorough strategic review of its business.
"The Special Committee has engaged in a thorough review of the state of the business, its outlook and opportunities. Having considered alternatives over a seven month period, the Special Committee believes TowerBrook’s $32.00 per share cash offer for the
Company is in the best interest of our shareholders," explained Johnson.
The agreement, currently awaiting True Religion’s shareholders, regulatory approvals and other customary closing conditions, is scheduled to be completed in the third quarter of 2013.