Bain Capital planning to acquire retailer Burlington Coat Factory in $2 billion deal

Burlington, N.J.— Private investment firm Bain Capital Partners, one of three partners that acquired the Toys "R" Us chain last year, is acquiring Burlington Coat Factory Warehouse Corporation in a $2.06 billion transaction.

Founded in 1972 by the Milstein family, Burlington Coat Factory operates 367 stores in 42 states, most of which feature Baby Depot departments, which offer infant and toddler apparel, furniture and accessories.

Bain Capital, along with Kohlberg Kravis Roberts & Co. and Vornado Realty Trust, is already involved in the juvenile products industry after having acquired more than 200 Babies "R" Us stores in its Toys "R" Us acquisition last year.

"Burlington Coat Factory is a well-managed retail business with a strong consumer following, high-quality product offerings, and good growth prospects," said Jordan Hitch, a managing director at Bain Capital. "We are delighted to have the opportunity to partner with the experienced management team to build on the company's track record of success in merchandising and store operations and to continue to grow the store portfolio."

The board of directors of Burlington Coat Factory has approved the proposed merger, which is subject to approval by the company's stockholders and other customary closing conditions, including governmental approvals. Bain Capital said in a press release that it has obtained commitments from members of the Milstein family and affiliated entities (representing approximately 62% of the current shares outstanding) to vote all Burlington Coat Factory shares owned by them in favor of the merger.