99 Cents Gets $1.34 Billion Buyout Offer From Leonard Green |
| Bloomberg - Mar 11, 2011 |
99 Cents Only Stores, the U.S. discount chain, received a proposal to be taken private by members of the Schiffer-Gold founding family and Leonard Green & Partners LP, in a deal valuing the company at $1.34 billion.
The $19.09-per-share offer represented a 14.4 percent premium on yesterday’s closing price. The City of Commerce, California-based company will consider the proposal, according to a statement today. 99 Cents Only Stores climbed $3.17, or 19 percent, to $19.85 at 9:36 a.m. in New York Stock Exchange composite trading.
Dollar stores have become takeover targets in the U.S. after luring shoppers away from traditional retail chains including Wal-Mart Stores Inc.Family Dollar Stores Inc. rejected an unsolicited bid by Nelson Peltz’s Trian Fund Management LP last week, saying it undervalues its business.
“The dollar store chains are attractive to private equity because they can take on more debt, accelerate store growth and improve operations,” Joseph Feldman, an analyst at Telsey Advisory Group in New York, said today in a telephone interview. “The companies generate consistent cash flow.”
Read Full Article from Bloomberg
- Posted: 2011-03-11 09:30:27
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