Books-A-Million's $21 Million Deal to Go Private - Report on Books-A-Million Inc.

Jul 21, 2015, 09:15 ET from www.aciassociation.com

NEW YORK, July 21, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Books-A-Million Inc. (NASDAQ: BAMM). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=BAMM

Highlights from our BAMM Report include:

  • Strategic Acquisition - On July 13, 2015, Books-A-Million, Inc. reported that it has signed a definitive agreement to be acquired by a newly organized entity owned by the Anderson Family, including Clyde B. Anderson, Executive Chairman of the Company, and related persons and entities, for a total value of c.$21 million.
  • Terms of the Agreement - As per the terms of the deal, Books-A-Million shareholders will receive $3.25 in cash for each share of Books-A-Million common stock. The offered price represents a premium of 93% over the trading price for common shares on January 29, 2015, when the Anderson family first proposed to take the company private, and a premium of 23% over the closing trading price on July 13, 2015. Further, the transaction will be financed through a combination of the contributions of the Company's shares owned by the Anderson Family and any management rollover participants and borrowings of c.$21 million under the company's existing credit facilities.
  • Recommendations from the Special Committee - Books-A-Million's Board of Directors formed a special committee of directors to evaluate a potential deal and negotiate the terms of the offer. No Anderson family members were part of that committee and the family recused itself from voting on the deal. The Company agreed to the deal after this Special Committee concluded that the transaction with the Anderson Family on the negotiated terms and at an acceptable price was fair and in the best interests of the Company's public shareholders (other than the Anderson Family shareholders and members of management rolling over their shares to the purchasing entity).
  • Management View - Commenting upon the acquisition, Clyde B. Anderson, the Company's Executive Chairman, stated that the transaction is a positive result for everyone, most importantly the Company's shareholders. He added that the Special Committee and its advisors have done a thorough job to assure that the agreement is fair and balanced, and all terms and conditions are arms' length.
  • Legal and Financial Advisory Panel - The release also informed that Houlihan Lokey is acting as financial advisor while King & Spalding LLP is the legal consultant to the Special Committee of the Board of Directors of Books-A-Million. Further, Latham & Watkins LLP is acting as legal advisor to Books-A-Million, Inc. and Munger, Tolles & Olson LLP is providing legal counsel to the Anderson Family.

To find out how this influences our rating on Books-A-Million Inc., read the full report in its entirely here: http://www.aciassociation.com/?c=BAMM

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