BJ’s Wholesale Club announced June 29 that it had
“definitively agreed” to be acquired by affiliates of Leonard Green &
Partners and funds advised by CVC Capital Partners Advisory.

The all-cash transaction is valued at $2.8 billion. BJ’s
operates 190 clubs in 15 states.

Analysts suggested the acquisition will help BJ’s expand beyond its home base in the Northeast and Southeast.

LGP’s other retail holdings include watch retailer Tourneau, J. Crew, and Jo-Ann Stores.

The
acquisition offer was first announced June 17.

BJ’s Board of Directors unanimously approved the merger, the
company said. The merger remains subject to BJ’s shareholder and regulatory
approvals, as well as closing conditions. BJ’s expects the transaction to close
in its fourth quarter of 2011.

BJ’s shareholders are to receive $51.25 per share in cash
for each share held, a 38 percent premium to BJ’s June 30, 2010, closing price.

Following the news, several law firms announced investigations of the company for “possible breaches of fiduciary duty” for failing to shop the company.

JCK