P.E. Firms Buy Wholesaler BJ’s

Jun 30 2011 | 4:32pm ET

A pair of private equity firms has snapped up discount big-box chain BJ’s Wholesale Club.

CVC Capital Partners and Leonard Green & Partners will pay $2.8 billion for the company, which is currently publicly-listed. BJ’s has 190 stores in 15 states, competing with the much larger Costco Wholesale and Wal-Mart Stores’ Sam’s Club. The buyout is expected to give the Massachusetts-based chain more freedom to expand beyond its East Coast base.

“BJ’s is the clear leader in the wholesale club industry in the Eastern United States with strong brand equity and a proven and successful strategy,” Leonard Green’s Jonathan Seiffer said.

BJ’s CEO Laura Sen said that “BJ’s will benefit from continued execution of our business plan and the significant retail expertise of our new partners at LGP and CVC, as well as from continued investments in our clubs, our people and technology, and the future of our business.”


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...