Leonard Green Buys Major Stake In BJ's Wholesale Club

Leonard Green & Partners have purchased a large share in BJ’s Wholesale Club Inc. The private equity firm has unraveled its plans to have a conversation with officials of the Wholesale Club regarding the prospective of making the Company private.

A share of 9.5% was bought by Green Equity Investors, which amounted to 5.1 million shares of the BJ’s stock.

Fresh financing plans will also be discussed by the Equity. However, BJ has not given any comments on the deal. Green Equity has many investments in food traders like Whole Foods Market.

Analyst David Strasser of Janney Capital Markets revealed that it is a good judgment on the part of BJ’s as Green Equity has led the buyout of other famous firms in the past.

Leonard Green & Partners disclosed that it will also talk to the management of BJ’s about alternatives for enhancing the value of shareholders.

BJ’s had revealed in May that its first-quarter fiscal profits increased more than anticipated at 7.4%. The profits were seen in membership and sales fees. The firm also hiked its incomes estimate for the year at that time.

The website of the firm revealed that it is focusing on cash flow business.