Schulze Offers To Buy Best Buy
TWICE Staff On Aug 6 2012 - 12:18pm
Minneapolis - Dick Schulze, founder and former chairman of
Best Buy, is offering to buy all of the outstanding
shares of the company which he does not already own, for a price of $24 to
$26 per share in cash.
Schulze is Best Buy's largest shareholder, controlling 20.1
percent of Best Buy shares, according to a statement issued by him this morning.
He has developed a business plan that addresses the many challenges Best Buy
faces and has held discussions with leading private equity firms interested in
participating in the acquisition, according to statement he issued this
Based on these discussions, he plans to finance the proposed
acquisition through a combination of investments from the private equity firms,
reinvestment of approximately $1 billion of his own equity, and debt financing.
Credit Suisse, Schulze's financial advisor, has informed him it is highly
confident it can arrange the necessary debt financing, the statement said.
Schulze has also held discussions to see if Best Buy
executives, including former CEO Brad Anderson and former president and COO
Allen Lenzmeier, are interested in rejoining the company.
The purchase price, which is based on current public
information and is subject to due diligence, represents a premium of 36 to 47
percent to Best Buy's closing stock price of $17.64 on Aug. 3, 2012, the
Schulze spent 46 years with Best Buy and its predecessor
company, Sound of Music, after founding the company in 1966. He served as the
company's CEO, chairman and a director until 2002. He
continued in the role of chairman and a director from 2002 until resigning from
the board in June 2012.