Alco Stores to be acquired by investment firm
HTT Staff -- Home Textiles Today, 7/25/2013 12:50:42 PM
Abilene, Kan. - Private equity firm Argonne Capital Group has signed an agreement to acquire 213-unit Alco Stores for approximately $47 million.
Atlanta-based Argonne specializes in restaurant and retail industries acquisitions. It currently operates or franchises more than 775 restaurants under brands such as IHOP, Applebee's, Krystal and Stevi B's Pizza. The firm's real estate investment platform, RCG Ventures, LLC, owns more than 60 shopping centers across 18 states.
"Argonne Capital is very selective in its acquisition process and focuses on companies that have strong growth potential," said Royce Winsten, Alco chairman. "Argonne will help Alco grow and achieve the goals management and the board have established for the company."
Rich Wilson, Alco's ceo, described Alco Stores "as a unique model for providing an attractive merchandise selection and exceptional value to consumers in underserved communities in small-town America. Our associates are supportive of the new brands, variety and value we offer shoppers - as well as the operational improvements behind the scenes."
The merger is expected to close later this year, subject to approval from Alco's shareholders.
In the most recent fiscal year, Alco generated net earnings of $1.3 billion on sales of $492.6 million. Sales were up 3.5% year-over-year, with comps up 0.3%.
Home furnishings and home décor together accounted for 17% of sales, up slightly from 16% of sales the previous year.
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