Cost Plus Gets a Bid
Originally Published June 10, 2008 11:25 AM
____________________
The difficulty in making money long in retail stocks has not been lost on Cost Plus (CPWM-NASDAQ) shareholders. Many value shops picked away building positions over the past year, but it was apparent that nothing good, short of a buyout, was in the cards. I have a funny story about this stock, but lets just say that putting booze in the back of a retail location is not exactly building a better mousetrap.
Home furnishings retailer Pier 1 Imports Inc. has offered to buy rival Cost Plus Inc. in a stock swap worth about $88 million.
Under its proposal, Fort Worth, Texas-based Pier 1 (NYSE: PIR) would issue 0.6 shares of its common stock in exchange for each share of Cost Plus stock. Based on the stocks’ closing prices on June 6, the deal would be worth about $4 per share, a premium of 31 percent from June 6, or 34 percent over the last 30 trading days.
Pier 1 said it expects a deal could be completed in the third quarter.
“Given our similar customer bases and broadly similar business models, but distinct market positions, we believe Cost Plus is an excellent fit with Pier 1 Imports,” said Pier 1 President CEO Alex Smith in a statement. “We are confident that combining our two companies would create a stronger and more competitive company that is better positioned for future growth.” St. Louis Business Journal
It hard to see anything better coming along. Take the offer, Cost Plus.
Pier 1 offers to buy rival Cost Plus for $88M
St. Louis Business Journal
____________________________
Comments:
Next entry: Ball Buster Mintz Lands at Tudor Investment Corp.
Previous entry: Intel, An Emerging Growth Story?
