Children's Place: Could Ascena Retail Group Come Knocking Next Year?
- Ascena Retail Group management has stated numerous times that their goal is to become a $10 billion revenue company.
- Acquisitions are a major component to this goal and the company has created an operational platform to allow for a “plug and play” acquisition strategy.
- Past acquisitions provide an insight for the criteria of potential acquisition candidates. Children’s Place’s business model fits well with those criteria.
- A reasonable case could be made that PLCE could be acquired for $57 to $81 a share by the end of 2015.
- This is a speculative theoretical exercise; any investment in PLCE should be made on the merits of the company as a standalone entity.