Goody's Family Clothing gets proposal from a second competitive bidder
17 Oct '05
2 min read
Goody's Family Clothing, Inc announced that it has received an acquisition proposal from a second competitive bidder. This bidder had previously submitted a proposal to acquire Goody's a few hours after Goody's signed its Agreement and Plan of Merger with certain affiliates of Sun Capital Partners IV, LP, but before the merger agreement had been made publicly available. The revised offer proposes a cash price of $8.85 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 with certain affiliates of Sun Capital Partners, dated October 7, 2005, and affirms that the price paid to the shareholders of Goody's, net of the termination fee and expenses would be $8.85 per share.
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 this second 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 last week that it had entered into the Agreement and Plan of Merger with certain affiliates of Sun Capital at acash price of $8.00 per share. Goody's also disclosed last week that it had received a competing proposal at a cash price of $8.50 per share, subject to due diligence, with the possibility of a higher price upon completion of due diligence by that party. Goody's commenced a discussion and due diligence period of up to 10 business days with that party on Wednesday, October 12.
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.
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