NEW YORK: Kohlberg Kravis Roberts & Co (KKR) and Bain Capital have teamed up with Vornado Realty Trust to buy struggling retailer Toys R Us Inc for about US$5.7bil, beating out a bid from rival private equity firm Cerberus Capital, the Wall Street Journal reported.
The sale of the whole company, at a premium of 10% to its latest market value of US$5.2bil, comes as a surprise after a hotly contested seven-month auction of the retailer’s toy business.
Last summer, under pressure from powerful competitors like Wal-Mart Stores Inc, Toys R Us had put its toy business up for sale and planned to focus on its faster growing Babies R Us stores, which sell infant clothes, linens and furniture.
Bain and Vornado originally teamed up to submit a bid for just the toy store chain. The link with buyout giant KKR came only this week after Toys R Us asked suitors to revamp their offers and bid for the entire company, a source familiar with the situation said. – Reuters