BJ’s Wholesale Club to go Private in $2.8 Billion Buyout Deal
Wednesday, June 29, 2011 9:22 AM

BJ’s Wholesale Club Inc. (NYSE: BJ) said Wednesday that it has entered into a definitive agreement to be acquired by affiliates of Leonard Green & Partners L.P. and funds advised by CVC Capital Partners in an all-cash transaction valued at $2.8 billion.

Under the terms of the agreement, BJ’s shareholders will receive $51.25 per share in cash for each share of BJ’s common stock they hold, representing an approximately 38 percent premium to the closing price of BJ’s shares on June 30, 2010, the day before LGP announced its 9.5 percent ownership stake in the company, and an approximately 7 percent premium to the closing price of BJ’s shares on June 28, 2011.

Laura Sen, president and chief executive officer, said, “BJ’s will benefit from the continued execution of our business plan and the significant retail expertise of our new partners at LGP and CVC, as well as from continued investments in our clubs, our people and technology, and the future of our business. Our members will continue to enjoy the top-quality merchandise, outstanding savings and great service that they’ve come to expect from BJ’s on every visit.”

Jonathan Seiffer, LGP partner, said “BJ’s is the clear leader in the wholesale club industry in the eastern United States with strong brand equity and a proven and successful strategy. We are pleased to partner with Laura and the management team and look forward to the next phase of the Company’s growth.”

The deal is expected to close in the fourth quarter 2011. Shares of BJ’s jumped 4.68 percent to $50.33 in pre-market trading Wednesday, after the company’s announcement.