With new ownership, Burlington Coat eyes more online sales
Burlington Coat Factory Warehouse Corp. has signed a definitive agreement to be acquired by affiliates of Bain Capital Partners LLC, which in 2005 was also part of an investment group that purchased Toys “R” Us Inc.
Under terms of the agreement, Bain Capital will purchase all outstanding shares of Burlington Coat Factory for $45.50 per share in cash, which totals approximately $2.06 billion. The board of directors of Burlington Coat Factory approved the proposed merger, subject to approval by the company’s stockholders and the government.
Looking beyond the proposed acquisition, Internet retailing has a role to play in growing company sales, says Monroe Milstein, chairman, president and CEO. “In fiscal 2005 we strengthened our online presence, launching a completely redesigned web site,” Milstein says. “We’re answering the growing demand for online shopping and creating a new source of revenue for the company.”
Burlington Coat Factory is a national, multi-channel retailer offering clothing, footwear and accessories for adults, children and babies. The company and its subsidiaries own and operate more than 360 stores. The company, founded in 1972, has been publicly traded since 1983. It is No. 153 in the Internet Retailer Top 400 Guide to Retail Web Sites.
Bain Capital, launched in 1984, is a private investment firm that manages private equity, venture capital, public equity and leveraged debt assets totaling more than $27 billion. It has private equity investments and add-on acquisitions in over 230 companies, including Toys “R” Us, Staples, Brookstone, Sports Authority and Duane Reade.
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