BJ's Pushes Ahead with Possible Sale
Posted on March 22, 2011 by
NATICK, Mass.-BJ's Wholesale Club may be moving closer to an acquisition by Leonard Green Partners.
According to a filing with the U.S. Securities and Exchange Commission, the warehouse-club retailer has entered into a confidentiality agreement with Leonard Green, whose affiliate, Green Equity Investors, owns 9.3 percent of BJ's common stock. Under the terms of the agreement, BJ's will provide information about the retailer's business and properties to Leonard Green, which will use the material to evaluate a potential acquisition of BJ's. In return, Leonard Green has agreed to certain provisions that restrict the ability of itself and its affiliates to acquire additional securities from BJ's prior to March 21, 2012.
BJ's announced in February that it was exploring a possible sale of the company, along with other "strategic alternatives," the company said in a statement. For its fiscal year ending on Jan. 29, the company reported a 28 percent decline in net income on a gain of 8.2 percent in total revenues.