99 Cents Only Stores to be sold for over a billion dollars
Posted by has in 99 cents only stores, other stuff, world on Saturday, October 8, 2011
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| 99 Cents Only Stores in Palm Desert, California |
"99 Cents Only Stores (NYSE: NDN) (the "Company") today announced that it has entered into a definitive agreement to be acquired by affiliates of Ares Management LLC and Canada Pension Plan Investment Board for $22.00 per share in cash, in a transaction with a total equity value of approximately $1.6 billion." 99 Cents Only Stores said in a Press Release Tuesday.
It added that "members of the Gold/Schiffer family have entered into a voting agreement in support of the transaction and will continue to hold a significant minority ownership stake. Eric Schiffer (CEO), Jeff Gold (President and COO), and Howard Gold (EVP) will continue in their current leadership roles at the Company and will serve as directors. Founder David Gold will serve as Chairman Emeritus."
"Today's announcement is the result of a comprehensive process in which the Special Committee, with the assistance of its outside advisors, carefully considered strategic alternatives for our shareholders," said Marvin Holen, Chairman of the Special Committee. "In connection with this process, affiliates of Ares and CPPIB made a definitive offer to acquire 99 Cents Only Stores, and this offer was fully negotiated by the Special Committee. The Special Committee unanimously recommended that our Board approve this transaction."
Based in Commerce, California, 99 Cents Only Stores is a price-point retailer chain that offers products at $0.9999 or less. Founded by David Gold in 1982, most of the stores are located in Southern California, with others in Nevada, Arizona and Texas. The company also operates Bargain Wholesale, which sells wholesale from showrooms in Los Angeles, Chicago, and Houston.