Destination Maternity and Orchestra-Prémaman call off merger

By

Emily Jensen

Published
Jul 28, 2017

After announcing plans to merge in December of 2016, the two companies have now revealed the termination of their prior deal. The two parties cited interests of their shareholders as the reason for calling off the deal.

 
The merger of the American company Destination Maternity and French group Orchestra-Prémaman would have resulted in a $1.1 billion corporation. The initial deal was agreed upon on December 19, 2016 and scheduled to take effect by mid-2017. Orchestra, which acquired the Belgian chain Prémaman in 2012, would have owned 72 percent of the resulting company and Destination Maternity 28 percent.
 
According to a statement released by the two, each will reimburse the other company for costs incurred during negotiations.

“Despite substantial and sustained efforts by both parties since execution of the merger agreement in December 2016, and in light of the challenges of satisfying applicable securities regulations in France and in the U.S. as well as the uncertainty as to whether those regulatory requirements could be satisfied without unreasonable effort and expense, particularly in connection with the completion of the registration and listing of Orchestra securities in the U.S., where such securities previously have not been publicly traded, the parties determined that it was in the best interests of their respective stockholders to terminate the merger transaction,” the two said in a statement.
 
Destination Maternity was founded in 1982 and is based in New Jersey. It operates 1,157 retail locations in the United States, Canada and Puerto Rico and counts the brands Motherhood Maternity, A Pea in the Pod and Destination Maternity in its portfolio.
 
Orchestra is based in Montpellier, France, and sells maternity and children’s fashions. It has expanded its presence throughout Europe through the acquisition of Baby 2000 and the Prémaman Group. Its merger with Destination Maternity would have marked its arrival in the United States.