Inside This Issue - News
Investment firm will take control of ALCO
August 12th, 2013
ABILENE, Kan. – ALCO Stores Inc. has agreed to merge with the private investment firm Argonne Capital Group LLC.
A general merchandise retailer that operates 213 stores in small towns across 23 states, ALCO says the $47 million deal will help it better achieve its growth plans.
"ALCO Stores has a unique model for providing an attractive merchandise selection and exceptional value to consumers in underserved communities in small-town America," chief executive officer Rich Wilson says. "Our associates are supportive of the new brands, variety and value we offer shoppers — as well as the operational improvements behind the scenes.
"ALCO looks forward to partnering with Argonne, and we believe the support they will provide will accelerate the company’s plans for sustained growth."
Under the terms of the merger agreement, Argonne will acquire all of the outstanding shares of ALCO Stores’ common stock for $14 a share in cash.
This price represents a premium of about 63% over ALCO’s share price on July 24, the last trading day prior to the deal.
The agreement also lets ALCO consider alternative proposals until August 23.
"ALCO Stores is a strongly-positioned business that has taken the right steps to move the company forward in today’s highly competitive retail environment," Argonne founder and president Michael Klump says. "The acquisition of ALCO would be a clear strategic fit within our existing portfolio of companies and real estate investments serving the dining and retail needs of everyday Americans."
The merger, which is expected to close later this year, is subject to approval from ALCO’s shareholders and other customary closing conditions.