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Last Updated: Thursday, 17 March, 2005, 16:17 GMT
Toys R Us sold to investment trio
Toys R Us
Toys R Us has 700 stores in the US
US retailer Toys R Us has been bought by an investment group of three firms for $6.6bn (3.4bn).

The group comprises Kohlberg Kravis Roberts (KKR), Bain Capital and Vornado Realty Trust, who will each hold an equal stake in the company.

The three are buying the whole of Toys R Us, which includes the toy retail chain and Babies R Us stores.

The move is a surprise as originally the retailer had only planned to sell its toy business.

'Bidding competition'

"We are pleased to announce this transaction, which brings our strategic review to a very successful conclusion," said John Eyler, chairman and chief executive of Toys R Us.

"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."

Toys R Us was due to announce fourth quarter and full-year 2004 results this week, but on Tuesday announced it had delayed them "to evaluate the change in (its) accounting for leases and leasehold improvements".

The consortium is taking on Toys R Us' debt, and each of the investors will own equal stakes in the company upon completion of the transaction.

The deal needs to be cleared by regulators and Toys R Us shareholders, and is expected to be completed by July.


SEE ALSO:
Toys R Us slashes costs
28 Jan 02 |  Business
Toys R Us warns on losses
09 Oct 01 |  Business
Toys R Us sinks into the red
20 Aug 01 |  Business
Internet hits Toys-R-Us
14 Aug 00 |  Business


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