Toys R Us agrees to be acquired by consortium
Fri., March 18, 2005
NEWARK, N.J. — Toys R Us Inc., the nation’s second-largest toy seller, agreed Thursday to be acquired by an investment group that includes two private equity firms and a real estate developer in a deal valued at $6.6 billion, ending a seven-month auction for the struggling retailer.
Toys R Us shares jumped more than 5 percent.
The Wayne-based company had announced in August it would seek to separate its sluggish toy business from the smaller, but more lucrative, Babies R Us division.
Instead, the company agreed to be swallowed whole by Kohlberg Kravis Roberts & Co., Bain Capital LLC and Vornado Realty Trust, who will be equal partners.
The consortium will acquire all shares of Toys R Us for $26.75 a share.
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