Wednesday, May 25, 2011
Big Lots, Small Price
Big Lots, Inc. took itself off the market after failing to generate a high enough price. Interest from potential bidders stalled over a share price in low 30s while the company's stock traded above $40 per share -- but news of failed talks dropped the company's stock down to about $33 per share.
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Big Lots, Inc. today announced that it has signed a definitive agreement to purchase all of the outstanding stock of Liquidation World Inc. Under the terms of the agreement, Big Lots, subject to closing conditions and approval by the shareholders of Liquidation World, acquire all outstanding shares of Liquidation World for $0.06 per share (CAD), or approximately $1.8 million (CAD). The company estimates that its' initial investment would approximate $36 million (CAD), including payment for the acquisition of all outstanding shares, satisfying the debt of Liquidation World, and normalizing the working capital needs of the business. The companies anticipate that the transaction will be completed by July 31, 2011.
ReplyDeleteBased in Brantford, Ontario, Liquidation World operates 92 stores in Canada and offers a broad assortment of closeout merchandise.