Goody's Family Clothing Inc announced that it has received a competing acquisition proposal from a third party. One of the parties that had previously submitted a proposal to acquire Goody's during the exclusivity period between Goody's and Sun Capital Partners IV, LP, has reaffirmed its interest in acquiring Goody's by submitting a revised acquisition proposal.
The revised bid proposes a cash price of $8.50 per share, subject to due diligence, with the possibility of a higher price upon completion of due diligence. The proposal takes into account Goody's obligations to pay a termination fee and expenses under the Agreement and Plan of Merger among Goody's and certain affiliates of Sun Capital Partners IV, LP, dated October 7, 2005.
The Goody's Board of Directors has determined that this new offer would reasonably be expected to lead to a superior proposal (within the meaning given to such term in the Agreement and Plan of Merger). Therefore, as permitted under that agreement, Goody's will commence a discussion and due diligence period of up to 10 business days with the competing acquiror in order to enable the Board of Directors of Goody's to determine whether the offer is a superior proposal.
Goody's disclosed earlier this week that it had entered into the Agreement and Plan of Merger with certain affiliates of Sun Capital at a cash price of $8.00 per share. The Company had previously received two acquisition proposals, one of which had been received during the exclusive negotiating period with Sun Capital and the other had been received a few hours after the execution of the Agreement and Plan of Merger, but before the merger agreement was publicly available.
Headquartered in Knoxville, Tennessee, Goody's is a retailer of moderately priced family apparel, and with the temporary closure of five stores due to hurricane damage, currently operates 369 stores in the 20 states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia.
Goody's Family Clothing Inc
marketing@alchempro.com
