Anderson Family Taking Books a Million Private

Posted on April 30, 2012

Clyde B. Anderson announced plans for the Anderson family to take Books-A-Million, Inc. (BAMM) private. Mr. Anderson is the Executive Chairman of BAMM. He and his family own approximately 53 percent of the common stock of the Company.

Under Anderson's plan, existing shareholders will receive $3.05 per share in cash. This represents a 20% premium over the stock's closing price on April 27, 2012. The proposal estimates the equity of BAMM to be $48.8 million. BAMM would be merged with a new company that the Anderson family will control. The stock repurchase will be funded using BAMM's existing credit line. The management of the company will remain the same.

Anderson wrote a letter to the Board of Directors which was also filed with the SEC. In the letter he says, "We believe that this Proposal presents a unique and highly attractive opportunity for the public shareholders of the Company." He also explains that the deal must be approved by a majority of the shareholders who are not members of the Anderson family. He also says that the family intends to continue the business and is not doing the deal to sell to a third party.



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