Contact Us

99 Cents Only Stores Will Be Bought Out for $1.6 Billion

Roger Hornback, Getty Images

99 Cents Only Stores Inc. said Tuesday it had agreed to a $1.6 billion buyout from Los Angeles private equity firm Ares Management and the Canada Pension Plan Investment Board.

The chain, founded in 1982, operates 289 stores in California, Texas, Arizona and Nevada, and was a pioneer of the single-price retail concept. Such low-priced stores have become increasingly popular with consumers in the years since the economy began to falter.

The family of company founder David Gold will continue to hold a significant minority stake. In addition, Chief Executive Eric Schiffer, company president Jeff Gold, and executive vice president Howard Gold will all remain in their positions and serve as directors, with David Gold serving as chairman emeritus.

In a company statement, Mr. Schiffer said the buyout agreement “delivers significant value to our shareholders… We have come to know and respect Ares Management and CPPIB through this process and we believe they will be excellent partners and help us achieve our long-term goals as a company.”

Ares Management also has invested in such businesses as Samsonite, Serta and Simmons Bedding. The Canada Pension Plan Investment Board invests the retirement assets of some 17 million Canadians.

On Tuesday morning, shares of 99 Cents Only Stores Inc. were trading at $21.39, up 4.4 percent from Monday’s close.

[The Los Angeles Times]

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for TSM Interactive quickly by connecting your Facebook account. It's just as secure and no password to remember!