Friday, June 06, 2008
BORDERS BOUGHT BY A&R WHITCOULLS
Story just in from Shelf Awareness:
Borders Sells Asian Stores to Angus & Robertson-Whitcoulls
Borders Group has sold its stores in Australia, New Zealand and Singapore to A&R Whitcoulls, the major Australian and New Zealand bookseller that is owned by private equity firm Pacific Equity Partners. The deal is valued at US$104 million (about $90 million now and up to $14 million in deferred payments next year) and should close next week.Pacific Equity Partners had expressed interest since Borders put most of its international operations up for sale more than a year ago. After several delays, it received approval for the purchase from the Australian Competition and Consumer Commission. Earlier this year, the deal had apparently died over Borders's desire to retain a stake in the business; as announced today, the sale is for the whole company.PEP will be able to use the Borders brand as part of a licensing pact.
John Campradt, managing director of Borders Asia Pacific, will continue in that role.
Borders has been under financial pressure and cut 274 corporate jobs earlier this week. In a statement, CEO George Jones said, "This transaction represents an attractive valuation, permits us to forgo further investment in these businesses, and provides our company with a significant cash infusion to further reduce debt, which is one of our key financial initiatives. ARW is a well respected and highly successful retail company with outstanding leadership that will be strengthened with the addition of the local Borders executive team and our stores. We trust A&R Whitcoulls to successfully manage the Borders brand."
NZ Herald posted story to their website at 9.40am today.Read it here.
And from the Sydney Morning Herald at 10.16am NZ time.