Struggling toy retailer Toys "R" Us said on Thursday it agreed to a US$6.6 billion buyout by an investor group headed by Bain Capital and Kohlberg, Kravis, Roberts and Co.
The group will buy all outstanding shares of the retailer for US$26.75 a share, and will assume the debt of the company.
Two prospective bidders -- the Kohlberg Kravis Roberts (KKR) group and a second investment group led by Cerberus Capital Management -- sparked a bidding war for the total company, which includes its struggling toy division as well as the successful Babies "R" Us division.
KKR, an established leveraged buyout firm, has played a key role in some of the world's most notable mergers and acquisitions.
It generally takes a company private, builds it up and then takes it public again or sells it for a premium.
Bain is a large private-equity group that has taken positions in such wide-ranging companies as Domino's Pizza and Staples, among others.
Also part of the winning group is Vornado Realty Trust, which said it was putting in US$450 million for a one-third interest in the venture.
Vornado is a real-estate investment trust that owns and manages many properties, including the Merchandise Mart in Chicago.
The company, in a lengthy process that began last August, initially said it was seeking buyers only for the toy-retailing chain that bears its name. But after the Cerberus group offered an alternative buyout proposal last month, the company changed the parameters of the bidding.
"We are pleased to announce this transaction, which brings our strategic review to a very successful conclusion," said John Eyler, chairman and chief executive officer of Toys "R" Us.
"There was competition among bidders during the review process, and the acquisition price reflects the compelling value of the global Toys `R' Us and Babies `R' Us operations and assets," Eyler said.
Toys "R" Us, with some 1,500 stores including 600 outside the US, helped transform toy retailing as a leading specialty "big box" store, but has been struggling amid competition from the likes of Wal-Mart and other discount retailers. However, the baby supply superstores have been performing well.
Toys "R" Us, Inc reported sales of US$11 billion in the fiscal year to Jan. 31 last year, but profits fell sharply to US$88 million.
In the most recent quarterly report to Oct. 30, it posted a net loss of US$25 million on net sales of US$2.2 billion.
The Central Weather Administration (CWA) yesterday said it is expected to issue a sea warning for Typhoon Fung-wong this afternoon and a land warning tomorrow. As of 1pm, the storm was about 1,070km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point, and was moving west-northwest at 28 to 32kph, according to CWA data. The storm had a radius of 250km, with maximum sustained winds of 173kph and gusts reaching 209kph, the CWA added. The storm is forecast to pass near Luzon in the Philippines before entering the South China Sea and potentially turning northward toward Taiwan, the CWA said. CWA forecaster Chang Chun-yao (張峻堯) said
PREPARATION: Ferry lines and flights were canceled ahead of only the second storm to hit the nation in November, while many areas canceled classes and work Authorities yesterday evacuated more than 3,000 people ahead of approaching Tropical Storm Fung-wong, which is expected to make landfall between Kaohsiung and Pingtung County this evening. Fung-wong was yesterday morning downgraded from a typhoon to a tropical storm as it approached the nation’s southwest coast, the Central Weather Administration (CWA) said, as it issued a land alert for the storm. The alert applies to residents in Tainan, Kaohsiung, Pingtung and Taitung counties, and the Hengchun Peninsula (恆春). As of press time last night, Taichung, Tainan, Kaohsiung, and Yilan, Miaoli, Changhua, Yunlin, Pingtung and Penghu counties, as well as Chiayi city and county had
The Central Weather Administration (CWA) yesterday issued a sea alert for Typhoon Fung-wong (鳳凰) as it threatened vessels operating in waters off the Pratas Islands (Dongsha Islands, 東沙群島), the Bashi Channel and south of the Taiwan Strait. A land alert is expected to be announced some time between late last night and early this morning, the CWA said. As of press time last night, Taoyuan, as well as Yilan, Hualien and Penghu counties had declared today a typhoon day, canceling work and classes. Except for a few select districts in Taipei and New Taipei City, all other areas and city
VIOLATION OF NORMS: China’s CCTV broadcast claimed that Beijing could use Interpol to issue arrest warrants, which the MAC slammed as an affront to order The Mainland Affairs Council (MAC) yesterday condemned the Chinese Communist Party (CCP) for attempts to intimidate Taiwanese through “transnational repression.” The council issued the remarks after state broadcaster China Central Television (CCTV) yesterday during a news broadcast aired a video targeting Democratic Progressive Party (DPP) Legislator Puma Shen (沈伯洋), threatening him with “cross-border repression” and saying: “Stop now, or you will be next,” in what Taipei officials said was an attempt to intimidate not only Shen, but also the broader Taiwanese public. The MAC in a statement condemned the threat, accusing Beijing of trying to instill fear and self-censorship among Taiwanese and
RSS