A private equity firm is buying Abilene-based Alco Stores, which mainly serves small towns across the central United States, for $47 million.
Alco and Argonne Capital Group, a private investment firm based in Atlanta, today announced that Argonne will acquire Alco Stores' outstanding common stock for $14 a share. That is a premium of 63 percent to Wednesday’s stock price.
Alco Stores' board of directors has approved the deal, according to a news release from the company. Shareholders still have to approve the offer. Alco also has the right to solicit other offers through Aug. 23.
The deal is expected to close later this year.
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“We are excited about the opportunity to acquire ALCO Stores, which is a strongly-positioned business that has taken the right steps to move the company forward in today's highly competitive retail environment,” Argonne Founder and President Michael Klump said, in a statement. “The acquisition of Alco would be a clear strategic fit within our existing portfolio of companies and real estate investments serving the dining and retail needs of everyday Americans.”
Earlier this year, Alco announced it would move its headquarters from Kansas to Texas.