ShopKo To Go Private
April 11, 2005-- Home Textiles Today,
Green Bay, Wis. —ShopKo's chairman and, possibly, other members of the retailer's senior management will participate in the acquisition of the chain by a Minneapolis-based private equity firm for slightly more than $1 billion, including cash.
But Sam Duncan, the chain's president, has declined to participate and will step down following the closing.
The agreement, with buyout company Goldner, Hawn, Johnson & Morrison, will pay $24 in cash for each outstanding share of ShopKo common stock. The net transaction price is about $715 million plus the assumption of $330 million in debt.
Chairman Jack Eugster, who is an investor in the buy out, has resigned his position as chairman and will step down from board committee positions in order to avoid any conflicts of interest, according to spokesman John Vigeland. Eugster will retain his board seat during the transaction, however, and will become chairman and acting CEO following the close, until a new president and CEO is named.
GHJ&M, whose portfolio currently numbers eight firms, has no current retail holdings. It was outbid several years ago in an effort to acquire Elder-Beerman department stores.
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