According to published reports, Dallas-based privately-owned retailer and home organizer
Container Store has put itself on the block and sought J.P. Morgan and Cravath, Swain and Moore LLP to weigh its strategic options, including a possible sale.
A report Monday in the Dallas Morning News said company executives have grappled for years trying to figure out how to release the equity of the 29-year-old company, but preserve its culture, keep management in place and accelerate growth. The report said the Container Store expects sales of more than $500 million in its 2006 fiscal year, which ends in just a few days, up from $425 million in 2005. Indeed, there seems to be much room for growth. The company has added just 38 locations in its almost 30 years in operation. Having sold off small stakes in the company over the years and stock options to a select number of employees, co-founder and chief executive Kip Tindell told the paper: "We'll never know the top of market value of this company unless we try to sell a majority stake."
While it isn't clear if the Container Store will choose an offer from strategic or private equity bidders, if it agrees to a buyout, it will join neighboring arts and crafts retailer
Michaels Stores Inc. of Irving, Texas, which Bain Capital LLC and Blackstone Group LP took private in a $6 billion buyout in July and
Linens 'n Things Inc., of Clifton, N.J., which agreed to a $1.3 billion buyout from Apollo Management LP in late 2005.
—Carolyn Murphy
Go to story from Dallas Morning News
Michaels completes take-private deal
Apollo beds Linens for $1.3 billion
Continue reading below
