After months of speculation, U.S. discount retailer BJ’s had agreed to enter into a private sale to two private equity firms Leonard Green & Partners and CVC Capital Partners for $2.8 billion in cash. The deal follows another large purchase for Leonard Green in the last year, which bought JCrew in partnership with TPG Capital for around $3 billion last November.
Leonard Green, which manages $9 billion in assets, has an appetite for assets in the U.S. retail sector that may be turned around with improved management and perhaps a foray into international sales. JCrew’s CEO Mickey Drexler said he plans 20 stores in Canada, and the company has its sights focused on Asia for future development.
BJ’s shareholders will get $51.25 per share under the agreement, representing a premium of nearly 7% measured against the closing price of BJ’s shares on Tuesday this week.
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