Updated with correction.
99 Cents Only Stores, the operator of 289 U.S. discount shops, agreed to be acquired by the C$153.2 billion (US$148.6 billion) Canada Pension Plan Investment Board, Toronto, and Ares Management and for about US$1.6 billion in cash.
Members of the founding Gold/Schiffer family support the $22-a-share offer and will continue to hold a minority stake in the company, company executives said Tuesday in a statement. It was not known how much the Canadian pension plan will own.
99 Cents Only had considered a buyout and other options since April, a month after Leonard Green & Partners and the founding family offered to take it private for about $1.34 billion. Dollar stores have become takeover targets as they lure consumers who prefer quicker trips and smaller shops than Wal-Mart Stores Inc. locations when buying items such as toothpaste and packaged foods.
The dollar-store chain, led by CEO Eric Schiffer, said it had $221.8 million in cash and marketable securities and no debt at the end of its fiscal first quarter. Sales in the period advanced 6.3% to $368.3 million.