Things are finally getting serious between Leonard Green & Partners and BJ’s Wholesale Club.
The Los Angeles-based buyout fund — whose stormy, nine-month courtship of the regional warehouse retailer has drawn skepticism about whether a buyout will ever happen — will finally get to examine the company’s books as it mulls a possible acquisition, according a securities filing yesterday.
“Things are going fine,” a source told The Post earlier this week, indicating optimism about a possible going-private transaction that analysts say could fetch upwards of $3 billion.
That’s despite the fact that BJ’s management, amid steady prodding from Leonard Green, has been reluctant to enter any discussions since the private-equity shop disclosed a 9.3-percent stake last July, as well as an interest in buying the whole company.
As part of this week’s confidentiality agreement that gained the buyout shop access to BJ’s books, Leonard Green won’t acquire any additional BJ’s shares for one year.
Leonard Green — which partnered earlier this month with buyout giant TPG to acquire preppy retailer J. Crew for $3 billion — “has wanted to own BJ’s for years,” according to one source close to the situation.
The source added that the firm sees “tremendous potential” to improve merchandise and expand the chain well beyond its stronghold in the Northeast.
Still, Leonard Green “hasn’t necessarily been promising jobs to everybody in top management,” the source added.
In a filing yesterday, BJ’s said it won’t comment further until an independent board committee reaches a recommendation or the process is concluded.
Confirming a November report in The Post, BJ’s said last month it has hired Morgan Stanley to explore strategic options, including a possible sale.
But interest from other private-equity funds has been “lackluster,” according to a source, paving the way for exclusive talks with Leonard Green.
