Leonard Green, CVC in Deal to Acquire BJ's
June 30, 2011,
WESTBOROUGH, Mass.-Leonard Green & Partners and CVC Capital Partners have made a deal to purchase BJ's Wholesale Club for about $2.8 billion, according to a statement from the warehouse-club retailer.
The agreement involves an all-cash transaction in which BJ's shareholders will receive $50.33 per share, or a 38 percent premium to the closing price of BJ's shares on June 30, 2010, the day before Leonard Green announced its 9.5 percent ownership stake in the retailer and about a 7 percent premium to the closing price for BJ's shares yesterday. BJ's stock closed trading yesterday at $48.08 a share. Subject to the approval of the shareholders, the transaction is expected to close in the fourth quarter of this year.
Laura Sen, BJ's president and CEO, said, "BJ's will benefit from the continued execution of our business plan and the significant retail expertise of our new partners at (Leonard Green) and CVC, as well as the continued investments in our clubs, our people and technology, and the future of our business."