Francesca’s Besting Lululemon Seen Enticing Buyers: Real M&A

Francesca’s Holdings Corp., the women’s boutique operator that boasts the retail industry’s fastest growth rate, may also command the most expensive price tag in a U.S. takeover.

Francesca’s is projected by analysts to boost sales by 80 percent during the next three years, faster than any other apparel chain including Lululemon Athletica Inc., according to data compiled by Bloomberg. With the $1 billion company poised to report record free cash flow and more than double its store count to 900 outlets, Francesca’s could appeal to private-equity firms, Avondale Partners LLC said. Rue21 Inc., a similar-sized clothing retailer, agreed in May to a buyout by Apax Partners.