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Bain finalises Burlington deal

Bain Capital has completed its buyout of clothing retailer Burlington Coat Factory, paying $2.1 billion for the property.

Boston-based Bain Capital has completed its buyout of Burlington Coat Factory Warehouse Corp., finalising the $2.1 billion (€1.7 billion) public to private almost three months following the deal’s first announcement.

Bain agreed to pay $45.50 a share for the company, and reportedly topped bids coming from the likes of Kohlberg Kravis Roberts, Apollo Management and Texas Pacific Group.

The sale price came in ahead of what stock analysts were expecting. Lehman Brothers, in a research note from last July, estimated that the company would fetch between $36 and $45 a share.

Burlington Coat Factory is based in New Jersey and had been headed by the Milstein Family, which controlled roughly 62 percent of the company’s outstanding stock. The company operates 367 stores in 42 states across the US and reported $3.17 billion in sales for the fiscal year ended May 28, 2005.

The deal comes shortly after Bain hit its $8 billion cap for its ninth fund Bain Capital IX. The firm, as of the first week in April, was still in the process of raising a $2 billion co-investment vehicle.

Goldman Sachs advised the sellers on the transaction.