retail news in context, analysis with attitude

The Boston Globe takes note of an interesting nugget that is in filings made with the US Securities and Exchange Commission (SEC) regarding the acquisition of BJ’s Wholesale Club by Leonard Green & Partners LP and funds advised by CVC Capital Partners for $2.8 billion, or $51.25 per share.

According to the story, “Another strategic buyer, described as Party A, expressed interest in acquiring BJ’s at a price of $55 to$60 per share. But BJ’s decided not to pursue this deal because of antitrust concerns and business risks related to sharing sensitive competitive information with Party A, which was not identified in the filing.”

BJ’s essentially competes with two other, larger wholesale club chains - Costco, and Walmart-owned Sam’s Club.

So the question is, who was interested in acquiring BJ’s for even more money than was eventually spent on the 190-unit chain?

In other news from the filings, the Globe reports that BJ’s CEO Laura Sen “will receive nearly $15 million in compensation in a golden parachute arrangement if she is terminated by the private equity firms that are acquiring the Westborough chain, according to a securities filing today.

“Other top executives stand to earn more than $4 million in their own golden parachute agreements as part of the proposed takeover deal with Leonard Green & Partners LP and funds advised by CVC Capital Partners. If Sen continues to lead the company, she will earn roughly $9.2 million, according to the filing with the Securities and Exchange Commission.”
KC's View:
Beats me which one it was. If I had a gun to my head, I’d probably guess Walmart/Sam’s, though ...