99 Cents Only Stores To Go Private

By on Oct 13, 2011 in Business, United States Comments
99 Cents Only Stores
99 Cents Only Stores
Image Credit: Thankstelfair/Wikipedia

The 99 Cents Only Stores Inc. reportedly agreed to go private on a deal valued at $1.6 billion after dealing with several groups interested in the company, Los Angeles Times reported on October 12, 2011.

According to the report, a private equity firm Ares Management and Canada Pension Plan Investment Board offered $22 per share in cash which was said to have the highest bid offer from other investors.

David Gold, the founder and president of 99 Cents Only Stores together with the company’s CEO Eric Schiffer, Executive Vice-President Howard Gold and Chief Operating Officer Jeff Gold would remain in their current leadership roles, reports said.

“We have come to know and respect Ares Management and CPPIB through this process, and we believe they will be excellent partners and help us achieve our long-term goals as a company,” Schiffer was quoted saying in a company statement.

Meanwhile, the deal is expected to be completed in the first quarter of next year. The 99 Cents Only Stores operates about 289 stores, mostly in California, with other locations in Arizona, Texas and Nevada.

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