Leonard Green & Partner’s $1.6 billion takeover of Jo-Ann Stores is expected to close later Friday, according to a statement. At a special meeting of Jo-Ann shareholders Friday, over 99% of shares that were voted were cast in favor of the merger. About 82% of total outstanding shares approved the takeover. Jo-Ann shares will no longer trade on the NYSE and will be delisted. In December, Leonard Green, a PE firm, offered to buy Jo-Ann for $61 a share.
Jo-Ann Stores, Inc. (NYSE: JAS) (the “Company”) announced that, at the special meeting of shareholders held today, its shareholders approved the adoption of the merger agreement between an affiliate of Leonard Green & Partners, L.P. and the Company. Of the shares that were voted, over 99% were in favor of the adoption of the merger agreement. Approximately 82% of the total outstanding shares, as of the record date, voted in favor of the merger agreement. The Company anticipates the closing of the transactions contemplated by the merger agreement, including the merger, will occur later today. With the closing of the merger, shares of the Company’s common stock will no longer trade on the New York Stock Exchange and will be delisted.
Under the terms of the merger agreement, the Company’s shareholders (other than shareholders who exercise dissenters’ rights in accordance with Ohio law) will receive $61.00 in cash, without interest and less any applicable withholding taxes, for each share of the Company’s common stock. Subject to the closing of the merger, the Company anticipates that the merger consideration will be payable to shareholders beginning March 29, as required by the terms of the merger agreement.
Shareholders who hold shares through a bank or broker will not have to take any action to receive the merger consideration, as the exchange of their shares for the merger consideration will be handled by the bank or broker. Shareholders who hold certificates will receive a letter of transmittal with instructions regarding delivery of their shares to the Company’s exchange agent, Computershare Investor Services.
About Jo-Ann Stores, Inc.
Jo-Ann Stores, Inc. (www.joann.com) is the nation’s largest specialty retailer of fabrics and one of the largest specialty retailers of crafts, operating 751 stores in 48 states as of January 29, 2011.
About Leonard Green & Partners, L.P.
Leonard Green & Partners is a leading private equity firm with over $9 billion in equity capital under management. Based in Los Angeles, Leonard Green & Partners invests in market leading companies across a range of industries. Significant current retail investments include Whole Foods Market, PETCO Animal Supplies, Leslie’s Poolmart, Sports Authority, J.Crew, The Container Store, Tourneau, David’s Bridal, Neiman Marcus Group, Jetro Cash & Carry and Tire Rack.