99 Cents Only Stores Sold for Over a Billion

The retailer's board is recommending approval but the offer must be approved by the company's shareholders

By Scott Weber
|  Thursday, Oct 13, 2011  |  Updated 8:55 AM PDT
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A store built on items sold for just 99 cents agreed to be sold for $1.6 billion Tuesday.

99 Cents Only Stores Inc. agreed to be acquired by Affiliates of Ares Management LLC and Canada Pension Plan Investment Board for $22 per share cash, the retailer announced on its website.

The amount is 7.4 percent higher than the retailer's shares finished on Monday.

"I am pleased to announce this agreement as it delivers significant value to our shareholders," Eric Schiffer, CEO, said. "We look forward to continuing to deliver extreme value to our customers and providing a great place to work for our 99ers."

The bid is among several the retailer has received recently as investors' become increasingly interested in the dollar store industry.

Private equity firm Leonard Green & Partners LP and the Schiffer-Gold family, which founded the company, made an offer of $19.09 per share in March for the company, the Associated Press reported.

That offer did not go through however the family supports the latest acquisition, according to the retailer.

99 Cents Only Stores was founded in 1982 and currently operates 289 retail stores with 214 of those in   in California. Over half of the its sales come from food and beverages,  the company said.

The retailer's board is recommending approval but the offer must be approved by the company's shareholders, the AP said.

The deal could close as early as the first quarter of next year.

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