Stories broke on BJ's Wholesale Club's sale last week, and now there is an investor suing the company because the sale price of $2.8 billion is "grossly inadequate" Read it at Bloomberg.
BJ's Wholesale Club will be acquired by Leonard Green & Partners and CVC Capital Partners in an all-cash transaction valued at $2.8 billion. BJ's, which operates 190 warehouse clubs in 15 states, reported $10.6 billion in sales last year.
Under the terms of the agreement, BJ's shareholders will receive $51.25 per share, a 38 percent premium to the closing price June 2010, and a 7 percent premium to the closing price on June 28.
BJ's board of directors unanimously approved the merger agreement. The transaction is expected to close during the fourth quarter.
"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," says Laura Sen, president and chief executive officer. "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."