Jo-Ann Stores to be acquired by Leonard Green for $1.6 billion

December 24th, 2010 - 4:33 pm ICT by BNO News  

HUDSON, OHIO (BNO NEWS) — Jo-Ann Stores, Inc. has announced that it has entered into a definitive agreement to be acquired by an affiliate of Leonard Green & Partners, L.P. for a total price of approximately $1.6 billion.

Private equity firm Leonard Green, based in Los Angeles, offered $61 per share, which represents a premium of 34 percent to Jo-Ann’s close of $45.63 on Wednesday.

The board of directors of Jo-Ann Stores, a U.S. fabric and craft retailer competing with A.C. Moore Arts & Crafts Inc and Michaels Stores, approved the merger agreement by an unanimous vote, recommending shareholders to adopt the agreement.

If the acquisition is approved by the majority of stockholders of the Ohio-based Jo-Ann Stores, the transaction is expected to close in the first half of 2011.

The board of directors will also be permitted to solicit alternative proposals through February 14, 2011 to ensure the transaction is the best available for its shareholders.

In November, Leonard Green & Partners also acquired J. Crew Group, Inc. for approximately $3 billion.

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