Leonard Green, CVC May Move on BJ’s Club

Buyout shops Leonard Green and CVC Capital Partners may make a move for wholesale retailer BJ’s Wholesale Club Inc., Reuters reported, citing the New York Post. The deal could be valued at roughly $2.8 billion, the Post reported, adding that rival suitors Apollo Global Management and Bain Capital had pulled out of the race.

(Reuters) – Private equity firms Leonard Green and CVC Capital Partners [CVC.UL] could make a joint buyout offer for BJ’s Wholesale Club Inc (BJ.N) next week, valuing the third-largest U.S. wholesale club retailer at about $2.8 billion, the New York Post reported, citing sources.

The paper also said late on Tuesday that Apollo Global Management LLC (APO.N) and Bain Capital had pulled out of the race.

In April, a source told Reuters that Apollo might be interested in BJ’s Wholesale as the retailer could fit well with its Smart & Final chain.

Leonard Green and CVC Capital Partners did not immediately respond to requests seeking comment.

In March, Leonard Green & Partners said it was evaluating whether to buy BJ’s and had entered into a confidentiality agreement with the company.

In February, BJ’s Wholesale decided to explore a sale and other alternatives, after reports late last year suggested that Leonard Green had offered to buy the chain.

(Reporting by Renju Jose in Bangalore; Editing by Erica Billingham)