August 19, 2022

DealBook: Leonard Green and CVC Bid for BJ’s Wholesale

Leonard Green Partners and CVC Capital Partners have teamed up with to buy BJ’s Wholesale Club, which announced earlier this year that it was exploring a sale.

The two private equity firms said in a regulatory filing on Friday that they had submitted a joint proposal to buy the retailer. They did not disclose a specific bid price.

Leonard Green, which had previously expressed interest in acquiring BJ’s, is already the company’s largest shareholder, with roughly 9.3 percent of the stock.

Both Leonard Green and CVC are active players in the retail industry.

Leonard Green, based in Los Angeles, has investments in the Container Store, David’s Bridal, Neiman Marcus and Whole Foods. In December, the buyout shop agreed to buy Jo-Ann Stores for $1.6 billion. The deal followed a bid from TPG Capital for the clothier J. Crew.

CVC, located in London, has a more global perspective. Its holdings included C1000, the Netherlands supermarket chain; Matahari Department Stores in Indonesia; and Cortefiel, the clothing retailer in Spain.

Massachusetts-based BJ’s operates more than 190 warehouse in 15 states, mainly located on the East Coast. Amid speculation it was on the block, the company confirmed in February that it had decided “to explore and evaluate strategic alternatives.” Morgan Stanley was hired to help facilitate the sales process.

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