Jo-Ann Stores to sell itself to PE firm for $1.6 billion

(BestGrowthStock) – Fabric and crafts retailer Jo-Ann Stores Inc (JAS.N: ) said it agreed to be bought by an affiliate of private-equity firm Leonard Green & Partners, L.P. for about $1.6 billion, or $61 per share, in cash.

The offer price is at a premium of 34 percent to Jo-Ann’s Wednesday’s close and the transaction is expected to close in the first half of 2011.

Centerview Partners and J.P. Morgan are serving as financial advisers and Sullivan & Cromwell LLP and Thompson Hine LLP as legal advisers to Jo-Ann Stores.

Shares of the Hudson, Ohio-based company closed at $45.63 Wednesday on the New York Stock Exchange.

(Reporting by NR Sethuraman in Bangalore; Editing by Don Sebastian)

Jo-Ann Stores to sell itself to PE firm for $1.6 billion