Goody's, which operates 368 stores in the 20 states,made the announcement through a news release, butdeclined to name the entity that presented the newbid. Further research by GSR found that GMM CapitalLLC and Prentice Capital Management LLC expressedinterest in acquiring Goody's for $8.50 per share,topping the $8-per-share offer from Sun CapitalPartners.
Goody's Family's chairman and CEO Robert M. Goodfriendand his family own 42% of the outstanding shares,according to a press release.
GMM Capital and Prentice Capital made a bid forGoody's on September 29, but the chain was in themidst of exclusive negotiations with Sun Capital. Thetwo firms reiterated their interest in a letter onOctober 11, which was filed with the SEC. The all-cashoffer of $8.50 per share could possibly be increasedafter due diligence is completed, taking into accountthe additional expenses that Goody's is obligated topay to Sun Capital for terminating the agreement.
The letter from GMM Capital and Prentice Capitalstates: "We believe that our proposal is clearlysuperior to the $8.00 per share that is being offeredby Sun Capital under the Sun Agreement. Our proposalrepresents a premium of 6.25% over the price beingoffered by Sun Capital."The Sun Capital deal was valued at $265 million. TheBoca Raton, FL-based investment group firm is bestknown for its acquisition of Mervyn's for $1.2 billionin 2004.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
