BJ's Wholesale Enlists JP Morgan, Looks to Sell
BEVERLY HILLS, CA – In hopes of securing a suitor, BJ’s Wholesale has enlisted the aid of investment banker JP Morgan.
According to a New York Post report by Josh Kosman, the regional chain’s owners, CVC Capital Partners and Leonard Green & Partners, have retained the services of JP Morgan in hopes of attracting a $4-4.5 billion offer.
The report goes on to note that the two Private Equity firms had initially intended to take BJ’s public, but the plan was abandoned due to the generally poor performance of recent retail trading.
CVC Capital Partners and Leonard Green & Partners purchased the heavily indebt BJ’s in 2011. In the ensuing years, the company has grown its store count by meager 12 percent—from 190 to 213 stores—prompting some to speculate that BJ’s would eventually have to adopt a more aggressively-expansive strategy. And the New York Post noted that a new owner could adopt a similar strategy—expanding as a way to improve earnings.
Who could be in the market for BJ’s? Reportedly, Amazon has internally mulled the move over, and BJ’s could be an attractive asset for the online retailer if it makes its expected push into brick and mortar grocery retail. Bj’s currently operates 213 warehouse clubs and 130 gas stations across 15 states.
AndNowUKnow will continue to report on the situation as it develops.
