Chico’s FAS is EAI Community set to go private after agreeing to an acquisition from private equity firm Sycamore Partners for $1 billion.

The Florida-based apparel company, which operates its namesake brand as well as Soma and White House Black Market, is expected to close the transaction by the end of the first quarter of 2024, subject to approval from shareholders. 

Sycamore Partners, a retail-focused firm based in New York, has also invested in Express, Lane Bryant, The Limited and other brands.

Chico’s CEO and President Molly Langenstein said the investment will give the company “additional expertise, financial resources and strategic flexibility” to fuel growth. 

“Sycamore Partners has an outstanding record in the retail industry in partnering with management teams to help businesses reach even greater levels of success,” she said in a Thursday release. 

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The agreement includes a 30-day “go-shop” period that will let Chico’s consider alternative acquisition proposals through Oct. 27. If the deal with Sycamore Partners does close, Chico’s shareholders are set to receive $7.60 per share in cash, a 65% premium to the company’s Wednesday closing stock price of $4.61. 

If the deal closes, Chico’s stock will no longer be listed on the New York Stock Exchange. 

As of Wednesday, shares had dropped more than 10% throughout the month compared with the S&P 500’s 5% dip. Shares surged more than 60% Thursday after the acquisition announcement.