The Houston Chronicle reports that SF Holding Corp., a buyout arm of Little Rock, Ark., investment bank Stephens Inc., is considering a bid to take electronics and appliance retailer Conn’s Inc. private. The paper noted that SF, which holds just over 50% of Conn’s shares, raised the possibility in a regulatory filing Monday.
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However, The Chronicle also suggested that such a move is unlikely. Laura Champine, a Morgan Keegan analyst, told the paper she’d be “surprised if anything happens” since the Beaumont, Texas, company’s stock “doesn’t look terribly cheap right now.” Conn’s shares closed Monday at $24.93, trading at an earnings multiple of about 14. In fact, Conn's has fared better than rival chains Circuit City Stores Inc., which has been furiously cutting costs, and Tweeter Home Entertainment Group Inc., which filed for bankruptcy in June.
Champine also noted that the company has been trying to restructure its debt, and she speculated that Conn’s may be talking to SF about a recap. The company reported revenues of $760.7 million in 2006.
Conn's went public in a 2003 IPO co-managed by Stephens. —Jeffrey Kanige
See story from The Houston Chronicle
See regulatory filing
Tags: retail, acquisition, deals, m&a, mergers, private+equity
