BJ’s said Los Angeles-based Leonard Green and London-based CVC Capital Partners would pay $51.25 per share in cash for BJ’s common stock, a 7 percent premium to BJ’s closing price on June 28 of $48.08 a share.
The board of BJ’s, which began exploring “strategic alternatives” in February, approved the takeover proposal as of June 30 and is recommending shareholders vote for the deal, which is expected to close in 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,” BJ’s President and Chief Executive Laura Sen said in a statement.
BJ’s, based in Westborough, Mass., opened in 1984 and has since become a leading warehouse chain on the East Coast, but nationwide it trails Costco Wholesale Corp and Wal-Mart Stores Inc.’s Sam’s Club. The chain has 190 stores in 15 states, with none in California.