Leonard Green & Partners and CVC Capital Partners have proposed to acquire US club store chain BJ’s Wholesale Club.
In a filing with the Nasdaq stock exchange, Leonard Green said it and its affiliates had a 9.3% stake in the retailer and added that “the joint acquisition proposal contemplates that a newly formed entity jointly controlled by the LGP Funds and the CVC Funds would acquire all of the outstanding equity securities of the issuer through a merger”.
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The statement went on: “The joint acquisition proposal contemplates that the aggregate equity investment required to fund the potential acquisition would be obtained equally from the LGP Funds and the CVC Funds. There can be no assurance that LGP and CVC will reach an agreement with the issuer with respect to the potential acquisition or any other transaction relating to the issuer.”
A report in the New York Post last week predicted the two private-equity groups could make a bid. Though no financial terms were revealed in the release today, the New York Post said a bid would value BJ’s at about $2.8bn.
As reported in just-food in March, Leonard Green & Partners has been considering launching a bid to acquire BJ’s for some months.
In May, BJ’s raised its full-year earnings outlook as it booked a 29% jump in first-quarter profits. Net income rose to US$33.7m in the three months ended 30 April, up from a profit of $26.1m in the same quarter last year.
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