Bon-Ton bids for Elder-Beerman
July 29, 2003-- Home Textiles Today,
York, PA — The Bon-Ton Stores has offered roughly $80 million to acquire Elder-Beerman — which in late June entered into an agreement to merge with Wright Holdings.
Wright had offered shareholders $6.00 per share for common stock. Upping the ante, Bon-Ton has informed Elder-Beerman's board that it will pay $7.00 per share of common stock. Elder-Beerman's board has authorized discussions and negotiations with Bon-Ton, but stated in a release that it is continuing to proceed with its Wright merger agreement.
In a letter from Tim Grumbacher, chairman and ceo of The Bon-Ton, to Steven Mason, chairman of Elder-Beerman, Grumbacher stated that The Bon-Ton is prepared to commence due diligence and would like to complete the transaction by the end of September.
Elder-Beerman operates 68 stores in Ohio, West Virginia, Indiana, Michigan, Illinois, Kentucky, Wisconsin, Pennsylvania and Iowa. The Bon-Ton operates 72 department stores in targeted markets in Pennsylvania, New York, Maryland, New Jersey, Connecticut, Massachusetts, New Hampshire, Vermont and West Virginia.
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