Jo-Ann Stores Inc. may have a new owner, according to a press release from the Hudson-based fabric and craft store.
Jo-Ann Stores Inc. entered into a definitive agreement to be acquired by an affiliate of California-based Leonard Green & Partners, L.P. for $1.6 billion or $61 per share in cash. The offer represents a 34 percent premium to the closing price of Jo-Ann’s shares on Dec. 22.
The Jo-Ann Stores board of directors approved the merger agreement and recommends the company’s shareholders adopt the agreement with the private equity firm.
If the acquisition is approved by a majority of Jo-Ann Stores’ shares of common stock, the transaction is expected to close in the first half of 2011.
Darrell Webb, chairman and chief executive officer of Jo-Ann Stores commented, “We are excited about the prospect of working with Leonard Green & Partners as we further capitalize on opportunities to accelerate the expansion and upgrade of our stores and pursue market share gains.”