Elder-Beerman to merge with Bon-Ton stores
Casual Living Staff -- Casual Living, September 19, 2003
After months of discussions with warring bidders, Elder-Beerman has announced it entered into a merger agreement with The Bon-Ton Stores, under which it will be acquired by The Bon-Ton. Elder-Beerman shareholders will receive $8.00 per share in cash — $1.00 more than Bon-Ton originally bid.
Within the next five days, Bon-Ton will commence a tender offer to purchase all outstanding shares, followed by a second step merger of Elder-Beerman with a subsidiary of Bon-Ton. The completion of the tender offer is conditioned, among other things, upon at least two-thirds of Elder-Beerman's outstanding common shares, on a fully diluted basis, being tendered and not withdrawn prior to the expiration date of the offer; the proceeds of the financings under Bon-Ton's commitment letters being available to Bon-Ton; and satisfaction of applicable regulatory requirements.
Elder-Beerman also terminated its merger agreement with Wright Holdings, with which it entered into agreement in June. Wright Holdings — an investment consortium led by Elder-Beerman ceo Byron Bergren— last week had upped its bid offer to $7.05 per share in cash.