Going, Going, Sold for $5.7 Billion
By George Anderson
The New York Times is reporting that a group including Kohlberg Kravis Roberts, Bain Capital Partners and Vornado Realty Trust have agreed on a deal to buy Toys ‘R’ Us for $5.7 billion.
Immediately, speculation turned to what the new owners – two private equity firms and the real estate developer – would do with the business.
According to the Times’ report, “executives close to the negotiations said that at least for the foreseeable future, the Kohlberg Kravis, Bain and Vornado team would keep Toys ‘R’ Us as an operating toy business, while seeking to make it leaner and meaner.”
“Leaner and meaner” could very well include the closure and sale of current real estate holdings. An unnamed executive told the Times that up to 200 stores could be sold initially.
John Barbour, president of Toys ‘R’ Us’ stores in the U.S. is expected to stay on to manage the business.
Moderator’s Comment: If you were the new owner of Toys ‘R’ Us, what would you do with the respective businesses (TRU, Babies ‘R’ Us, online operations)
to make the company the strongest retailing entity possible? –
George Anderson – Moderator