Redcats USA to buy United Retail Group

ROCHELLE PARK, N.J. and NEW YORK Redcats USA, a home shopping marketer of apparel and home products has agreed to acquire United Retail Group, a specialty retailer of large-size women's fashion apparel, for $198.9 million, or $13.70 per share in cash, the companies announced today.

Raphael Benaroya, United Retail Group's chairman, president and ceo said, "We are very pleased to have entered into this merger agreement with Redcats USA. We believe that the combination of our two businesses will create a formidable entity in specialty retail. Our board of directors and management team fully support the transaction and believe that it delivers a high level of shareholder return that is commensurate with our solid business concept and growth strategy. Moreover, the transaction provides a great growth opportunity for our associates."

According to the companies, the merger is expected to close by year's end. Benaroya and George Remeta, United Retail Group's vice chairman and chief administrative officer, will remain with the company for a transition period of at least one year.