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Toys “R” Us Sells All Operations

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Toys “R” Us is selling the entirety of its worldwide operations, including both its global Toys “R” Us and Babies “R” Us businesses.

It is all going to an investment group consisting of affiliates of Kohlberg Kravis Roberts & Co. (KKR), Bain Capital Partners LLC, and Vornado Realty Trust.

Under the terms of the agreement, the investment group will acquire all of the outstanding shares of Toys “R” Us, Inc. for $26.75 per share, representing a transaction value of $6.6 billion plus the assumption of debt. Each of the investors will own equal stakes in the company upon completion of the transaction.

John Eyler, Chairman and CEO of Toys “R” Us, said, “We are pleased to announce this transaction, which brings our strategic review to a very successful conclusion. There was competition among bidders during the review process, and the acquisition price reflects the compelling value of the global Toys “R” Us and Babies “R” Us operations and assets.”

Mr. Eyler continued, “During the course of our strategic review, we redefined our business model and sharpened our competitive position. This enabled us to strengthen the value we provide to our customers, and we were rewarded with market share gains this past holiday season. We believe that our new financial partners will help us build on this momentum and we look forward to a successful future as a leading toy and baby products retailer.”

“Toys “R” Us and Babies “R” Us are premiere franchises with strong global brand recognition and a collection of high quality product offerings including toys, children’s apparel, and baby products and accessories,” stated Matt Levin, a Managing Director at Bain Capital. “We are excited by the prospect of partnering with the management team and employees to strengthen the long-term operating and financial performance of the businesses.”

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Toys “R” Us Sells All Operations
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