NEW YORK - Struggling toy retailer Toys "R" Us said Thursday it agreed to a 6.6 billion dollar buyout from an investor group headed by Bain Capital and Kohlberg, Kravis, Roberts and Co.
The group will buy all outstanding shares of the retailer for 26.75 dollars a share, and will assume the debt of the company.
Two prospective bidders -- the Kohlberg Kravis Roberts group and a second investment group led by Cerberus Capital Management -- sparked a bidding war for the total company, which includes its struggling toy division as well as the successful Babies "R" Us division.
"We are pleased to announce this transaction, which brings our strategic review to a very successful conclusion," said John Eyler, chairman and chief executive officer of Toys "R" Us.
"There was competition among bidders during the review process, and the acquisition price reflects the compelling value of the global Toys `R` Us and Babies `R` Us operations and assets."
Toys "R" Us, with some 1,500 stores including 600 outside the United States, helped transform toy retailing but has been struggling amid competition from the likes of Wal-Mart and other discount retailers.
03/17/2005 14:53 GMT