How to Turn 99 Cents into $1.6 Billion

Discount store chain 99 Cents Only Stores Inc. is selling out to private equity firms

This article is from the archive of our partner .

Ninety-nine-cent-only stores are willing to sell everything for under a dollar, well, except themselves--that goes for much more. The Los Angeles Times reports that, "99 Cents Only Stores Inc." a chain of discount stores,  "has agreed to be taken private in a deal valued at about $1.6 billion...after months of talks with several groups interested in buying the company."  Private equity firm Ares Management and the Canada Pension Plan Investment board orchestrated the private deal for $22 a share in cash, which is "32% higher than the stock's close on March 10, the day before it announced that it had received a $1.3-billion buyout proposal" from a Los Angeles investment firm, the LA Times reports.  The chain has 289 stores in four states--California, Texas, Arizona and Nevada--and "more than half of 99 Cents Only's sales come from food and beverages," reports the Los Angeles Times. Cheap stuff, we imagine, make up the rest of its sales.

This article is from the archive of our partner The Wire.