Hudson, Ohio -- Jo-Ann Stores said Thursday it has agreed to be acquired by an affiliate of private-equity firm Leonard Green & Partners for $1.6 billion in cash.
Los Angeles-based Leonard Green’s acquisition of the U.S.’s largest fabric retailer follows its $3 billion purchase of J. Crew, announced in late November.
Going private will enable Jo-Ann Stores to renovate stores and accelerate the chain’s expansion. It currently operates 756 stores.
“We are excited about the prospect of working with Leonard Green & Partners as we further capitalize on opportunities to accelerate the expansion and upgrade of our stores and pursue market share gains,” said Darrell Webb, chairman and CEO of Jo-Ann Stores.
Pending final approval and customary closing conditions, the transaction is slated to close in the first half of calendar 2011.
Other significant Leonard Green retail investments include Whole Foods Market; Petco; Sports Authority; The Container Store; Tourneau; David's Bridal and Neiman Marcus Group.