Ángel Franco/The New York TimesDan Rentillo, design director for David’s Bridal, in the company’s studio in Manhattan in 2011.

Love is in the air.

On Tuesday, the private equity firm Clayton, Dubilier Rice agreed to buy David’s Bridal in a deal that values the retailer at $1.05 billion.

“David’s Bridal is a unique and well-positioned specialty retailer competing in a large and stable industry,” Richard J. Schnall, a partner at Clayton Dubilier, said in a statement on Monday. “We look forward to working closely with the company to build on its market leadership and scale advantages to grow in new market segments, channels and geographies.”

The buyout of the bridal gown retailer is the latest industry buyout, as private equity firms hunt for turnaround plays.

The owners of David’s Bridal, Leonard Green and TPG Capital, began shopping the company to other private equity firms this summer. Despite its broad reach — it has about 300 stores in the United States and Canada — the retailer has been bogged down by concerns about its ability to compete against new entrants and the increase of consumers looking for higher-priced gowns.

The company, which has a partnership with Vera Wang, sells gowns that range from $99 to $1,500. But the bulk of its collection is in the middle of the range.

For Leonard Green and TPG, the deal represents a modest premium. The buyout firms bought David’s Bridal in 2007 from Federated Department Stores for $750 million. Leonard Green will maintain a minority stake.

The retail industry has been a popular hunting ground for private equity firms. Last year, BJ’s Wholesale Club agreed to a $2.8 billion buyout from Leonard Green and CVC Capital Partners. And in June, Thomas H. Lee Partners agreed to buy a majority stake in Party City, in a deal that valued the party supply retailer at $2.69 billion.

Article source: http://dealbook.nytimes.com/2012/08/28/clayton-dubilier-rice-agree-to-buy-davids-bridal/?partner=rss&emc=rss