Leonard Green buying BJ’s Wholesale for $2.8 billion

New York City -- BJ's Wholesale Club announced on Wednesday that it has agreed to be acquired by the private equity firms of Leonard Green & Partners and CVC Capital Partners (“CVC”) in an all-cash transaction valued at approximately $2.8 billion.

BJ's, based in Westborough, Mass., has 190 stores in 15 states. The company said its board unanimously approved the buyout.

Under the terms of the agreement, BJ’s shareholders will receive $51.25 per share in cash for each share of BJ’s common stock they hold, representing an approximately 38% premium to the closing price of BJ’s shares on June 30, 2010, the day before LGP announced its 9.5% ownership stake in the company, and an approximately 7% premium to the closing price of BJ’s shares on June 28, 2011.

Laura Sen, president and CEO, stated, “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.”

The deal is expected to close in the fourth quarter, pending a vote by BJ’s shareholders.

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