This is the second multi-billion dollar retail deal for Bain in the last month. In December, the firm and a group of investors agreed to acquire the Dunkin' Donuts chain for about $2.4 billion. Last March Bain, as well as Kohlberg, Kravis, Roberts & Co. and Vornado Realty Trust, bought the Toys "R" Us chain for $6.6 billion.
Bain is not the only private-equity firm investing in the retail industry as of late. Last month Sun Capital Partners bought discounter ShopKo Stores for close to $880 million. Also in December, a joint venture between Prentice Capital Management LP and GMM Capital LLC took Goody's Family Clothing private for about $290 million.
Don't expect to see private equity firms stop purchasing retailers any time soon, for better or for worse, says Howard Davidowitz, chairman of New York City-based Davidowitz & Associates, a consulting and investment banking firm. "We're going to be seeing this as long as these venture-capital firms have unlimited money and are under pressure to spend it."
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