Private Investor Firm Pays $2.8 Billion To Buy BJ's Wholesale Club

WESTBOROUGH (CBS/AP) -- BJ's Wholesale Club is being acquired by two private equity investors for roughly $2.8 billion.

The nation's third-largest wholesale club, which is headquartered in Westborough, said Wednesday that Leonard Green & Partners and CVC Capital Partners will pay $51.25 per share in cash for BJ's common stock. That's a 6.6 percent premium over Tuesday's closing price of $48.08.

BJ's has 190 stores in 15 states. Analysts say the takeover could help propel its growth.

LGP currently holds a number of investments in retail stores including J. Crew, Jo-Ann Stores, Whole Foods Market, Neiman Marcus Group, PETCO Animal Supplies, Leslie's Poolmart, The Sports Authority, The Container Store, Tourneau, David's Bridal, Jetro Cash & Carry and The Tire Rack.

BJ's said its board unanimously approved the buyout and is recommending that shareholders vote for it.

The deal is expected to close during the fourth quarter.

Shares of BJ's Wholesale Club Inc. jumped 5 percent, or $2.32, to $50.40 before the market opened.

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