Wednesday, January 11, 2006

Linens sales fall, but beat buyout criteria

Linens'n Things Inc. on Friday said fourth-quarter sales fell at stores open at least a year, but the results still met the targets required to complete the $1.3 billion sale of the home decor retailer.

The company, which private equity firm Apollo Management L.P. and its affiliates are buying for $28 per share, said sales fell 2.2 percent at stores open at least a year -- a key retail measure known as same-store sales.

Under the Apollo deal, same-store sales could be down no more than 6 percent. Linens 'n Things also said it expected to far exceed its target of $140 million in full-year adjusted earnings before interest, taxes, depreciation and amortization, which was another condition of the sale.

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