Check Out Pier 1’s sudden offer to buy Cost Plus for $88.4 million in stock, just as the home decor retailer is trying to cut its own losses from previous quarters by shutting stores, cutting jobs and spending less on marketing.
Pier 1 said it would issue 0.6 shares of its common stock for each Cost Plus share outstanding. The Texas-based company believes it can seal a deal in the third quarter.
Pier 1’s chief executive officer Alex Smith thinks Cost Plus is an “excellent” fit and that a deal would improve Cost Plus’ s operating margin due to synergies with Pier 1 in areas like store operations and shared services.
From its end, Cost Plus, which sells home furnishings and gourmet food, said it would meet with its financial and legal advisors to review the proposal.
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(Photo: Pier 1 Web site)
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