Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

THRIFTY PARENT TCH ACQUIRING PAYLESS FROM KMART

This article was originally published in The Tan Sheet

Executive Summary

THRIFTY PARENT TCH ACQUIRING PAYLESS FROM KMART and will combine PayLess with its Thrifty Drug and Bi-Mart operations, the firms announced Dec. 2. The deal is valued at over $ 1 bil., consisting of $ 592 mil. in cash; assumption or refinancing of approximately $ 170 mil. of debt; $ 100 mil. in subordinated debt securities; and common stock representing 47% of the equity of TCH, Kmart said. The transaction, expected to be complete by the end of February, is subject to receipt of financing and must clear Hart-Scott-Rodino federal anti-trust provisions. The TCH shareholders will hold 53% of the equity of the combined entity. Sales of the combined companies are expected to reach $ 4.7 bil. in 1994. Wilsonville, Ore.-based PayLess Drug Stores Northwest operates 572 stores in 12 states. It was purchased by Kmart in 1985. TCH Corp. is a privately held corporation controlled by an investment partnership managed by Leonard Green & Partners, an investment banking firm that specializes in management buyouts. TCH acquired Los Angeles-based Thrifty Corp. in September 1992. Thrifty has 494 stores in California. TCH also owns Bi-Mart Corp., a 41-store membership discount drug and general merchandise chain headquartered in Eugene, Ore.; Denver, Colo.-based Gart Bros. Sporting Goods; and MC Sporting Goods, located in the Midwest. Gart Bros. and MC Sporting Goods are not affected by the acquisition. Kmart anticipates that it will complete its valuation of the TCH equity by the end of the year. "Based upon preliminary estimates using conservative valuation assumptions, an after-tax charge of approximately $ 100 mil. could be incurred," Kmart said.
Advertisement

Topics

Advertisement
UsernamePublicRestriction

Register

PS082234

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel