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STOR ACCEPTS CASH TENDER OFFER FROM IKEA

 STOR ACCEPTS CASH TENDER OFFER FROM IKEA
 CITY OF INDUSTRY, Calif., Dec. 31 /PRNewswire/ -- STOR


Furnishings International Inc. (NASDAQ: STOR) announced today the signing of a definitive merger agreement with IKEA Holding U.S. Inc. whereby IKEA will acquire STOR for $3.10 per share in cash for each outstanding share of STOR common stock and nonvoting common stock. The merger agreement provides for the acquisition to proceed by means of a tender offer for all STOR shares, which tender offer will commence within five business days.
 The tender offer will be conditioned upon, among other things, there being validly tendered prior to the expiration of the offer and not withdrawn a number of shares that will constitute, on the date of purchase, at least 90 percent of the outstanding common stock and all of the outstanding nonvoting common stock. The merger agreement provides that STOR shares not purchased in the tender offer will be acquired in the subsequent merger at the same price as that which is paid in the tender offer.
 Sutro & Co. Incorporated has delivered an opinion to the board of directors of STOR that the proposed sale of the company to IKEA is fair to the shareholders of STOR from a financial point of view.
 The merger agreement also provides for a cash payment of $5 million by the breaching party to the other upon termination of the merger agreement under circumstances generally involving a willful failure of a party to honor the terms of the merger agreement.
 STOR Furnishings International operates four home furnishings stores -- three in the Los Angeles area and one in Houston. The company's annual sales volume is approximately $70 million.
 IKEA, founded in Sweden, is a home furnishings retailer with 100 locations in 25 countries. Worldwide sales last year totaled $3.8 billion. IKEA entered the U.S. market in 1985 and presently operates seven stores, mainly on the East Coast. Last year it opened its first California store in Burbank. Total sales of IKEA's U.S. stores were $284 million last year.
 Richard F. Clayton, STOR chairman and chief executive officer, commented: "The management and directors of STOR feel that this transaction is in the best interests of our stockholders, employees and customers. The prolonged recession, with its negative effect on housing starts, commercial real estate and retailers, created difficult problems for a company like STOR, which was striving to expand its operations.
 "Ours is a capital intensive business, and to proceed with our expansion plans, it is imperative that we seek additional financial resources. IKEA, one of the largest and most successful furniture retailers in the world, certainly has the financial resources to fund that growth.
 "The combined operations will continue to provide customers in Southern California and Houston with affordable, attractive furniture and home furnishings at everyday low prices."
 -0- 12/31/91
 /CONTACT: Richard F. Clayton, chairman and CEO of STOR, 310-912-8788/
 (STOR) CO: STOR Furnishings International Inc.; IKEA Holding U.S. Inc. ST: California IN: REA SU: TNM


SE-CH -- LA003 -- 5814 12/31/91 09:01 EST
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Publication:PR Newswire
Date:Dec 31, 1991
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