A headline on WSJ.com Wednesday morning read "Build-A-Bear may be in play." However, regular readers of TheDeal.com might recall that the retailer hired Lehman Brothers Inc. in late June to consider strategic alternatives including a sale. Plus, other news outlets reported on a sale possibility two weeks ago when the company canceled its scheduled appearance at an Oct. 25 investment conference. The conference is scheduled one week after the company is set to announce its third-quarter earnings.
Mattel Inc., Gymboree Corp., Hasbro Inc. and American Greetings Corp. have all been named potential buyers for Build-A-Bear Workshop Inc., according to Auction Block. The Journal story only listed Mattel and added Children's Place Retail Stores Inc. as another candidate. It also offered some interesting tidbits about possible takeout prices. Based on analyst comments, who suggest anywhere from a $25 a share offer to a $34 to $36 a share offer, a buyer would likely pay anywhere from $511 million to $743 million, which is in the middle of Auction Block's estimated $500 million to $1 billion price range. Build-A-Bear has a market cap of $351 million. —Matthew Wurtzel
See story from WSJ.com (subscription may be required)
See Sept. 13 story from The Financial Times (subscription may be required)
See June story from TheDeal.com
See auction profile from Auction Block (subscription requiured)
Tags: retail, acquisition, deals, m&a, mergers, private+equity
Continue reading below
