CITY OF COMMERCE, Calif.—Ares Management and the Canadian Pension Plan Investment Board have struck a deal to purchase 99 Cents Only Stores.
The total value of the acquisition is about $1.6 billion, $22 a share in cash, according to a statement from the retailer. Among its product line of consumables, 99 Cents Only also sells dinnerware, drinkware, storage products and home decor products. Ares, along with Ontario Teachers’ Pension Plan, is a co-owner of Serta and Simmons.
Members of the Gold and Schiffer families, currently the owners of 99 Cents Only Stores, will retain what the statement termed a “significant minority ownership stake.” Eric Schiffer, CEO, Jeff Gold, president and chief operating officer, and Howard Gold, executive vice president, will continue in their current roles and will serve as directors. Howard Gold, the retailer’s founder, will serve as chairman emeritus.
The transaction, which requires the approval of a majority of holders of 99 Cents Only Stores shares, is expected to close in the first quarter of 2012.