The deal that has been on and off since 2012, is seeing buyout deal close with their chairman’s family.
By Josh Beckerman. Source: WSJ.
Books-A-Million Inc. has reached a buyout deal worth about $21 million with the family of Chairman Clyde B. Anderson, at a higher price than the family’s January proposal.
The $3.25-a-share deal offers a 23% premium to Monday closing price of $2.64. As of January, when the family offered $2.75 a share, it owned or indirectly controlled a 58% stake. The family made an offer in 2012 for $3.05 a share that it later withdrew.
Mr. Anderson said at the time that the family wasn’t interested in selling its shares to a third party.
After the January bid, a special board committee reviewed the proposal and negotiated the price and other terms.
Bookstores have been hurt by online competitors like Amazon Inc. Borders Group Inc. filed for Chapter 11 in 2011, and then liquidated after failing to receive any offers to save it. Barnes & Noble Inc., which has closed some stores, has widened its offerings to include educational toys, games and other nonbook categories, which carry higher profit margins.
On May 29, Books-A-Million said third-quarter comparable-store sales fell 0.9% for the quarter ended May 2. Books-A-Million has 255 stores.