Leonard Green, CVC to Submit Bid for BJ’s Wholesale

(Reuters) – Private equity firm Leonard Green & Partners said it has teamed up with CVC Capital Partners to submit a proposal to buy BJ’s Wholesale Club Inc, the third-largest U.S. wholesale club retailer.

Leonard Green and its affiliates, which also reported a 9.3 percent stake in the retailer in a regulatory filing, however, did not disclose the financial terms of the proposal.

A deal would be the latest in Leonard Green’s retail buying spree. The private equity firm, which already owns Jo Ann Stores Inc and upscale apparel retailer J. Crew, has teamed up with the Schiffer-Gold family to bid for 99 Cents Only Stores.

Last week, the New York Post reported, citing sources, that the two firms could make a joint buyout offer for BJ’s Wholesale valuing the retailer at about $2.8 billion.

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

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

Shares of the company rose 4 percent to $50 in pre-market trading on Friday. They closed at $47.86 on Thursday on the New York Stock Exchange.

(Reporting by Viraj Nair in Bangalore; Editing by Saumyadeb Chakrabarty, Sriraj Kalluvila)