New York City Barnes & Noble said Monday it will buy Barnes & Noble College Booksellers, a leading contract operator of college bookstores in the United States. The deal, worth $596 million, or $460 million net of College's cash on hand at its expected closing.
The deal reunifies Barnes & Noble and the college-bookstore company, which is currently owned by Barnes & Noble chairman Leonard Riggio. Given what it called “the related nature” of the transaction, Barnes & Noble said a panel of four of its independent directors evaluated and negotiated the deal and recommended it to the full board.
Barnes & Noble also said it received commitment letters for a new $1 billion revolving credit agreement that will help fund the purchase and replace its existing facilities as well as those of Barnes & Noble College Booksellers.
Barnes & Noble expects the acquisition to boost full-year earnings per share between 30% and 35%.
The acquisition, approved by both companies' boards, is set to close around Oct. 1.
College Booksellers, which has a leading market position in the fragmented $10 billion college-bookstore industry, operates 624 college bookstores nationwide. It recorded revenue of $1.8 billion in its fiscal year ended May 2.