* Deal with affiliate of Sbar's Inc
* To be bought for $1.60/shr
(Adds background, stock price history)
By Mihir Dalal
Oct 4 An affiliate of Sbar's Inc will buy
smaller rival A.C. Moore for about $40.8 million in
cash, marking the second deal in the arts and crafts retail
space this year.
Earlier this year, private equity firm Leonard Green &
Partners' bought Jo-Ann Stores for $1.6 billion.
The offer of $1.60 for each A.C. Moore Arts And Crafts Inc
share is 68 percent more than the stock's Monday close.
However, the per share price is less than half the stock's
52-week high of $3.56 in March.
Weaker-than-expected quarterly results, dodgy consumer
confidence and a volatile stock market have hit A.C. Moore's
The company, which sells arts, crafts and floral
merchandise through 134 stores in the eastern United States, had
been looking at options, including a possible sale since
A.C. Moore has posted losses since 2008, unable to overturn
a steady fall in revenues since 2007, partly due to stiff
competition from bigger rivals Jo-Ann Stores Inc and privately
held Michaels Stores.
It turned into a penny stock after trading in the low 20s in
The Sbar's affiliate has received a financing commitment
from Wells Fargo to provide debt financing for the deal.
(Reporting by Mihir Dalal in Bangalore; Editing by Supriya