Perennial Net/Net Blair Corp. To Go Private

Jan.29.07 | About: Blair Corp. (BL)

Warren, PA-based clothing retailer Blair Crop. (BL), which we last reported on in August, will be acquired by Golden Gate Capital, a San Francisco private equity firm, for $173.6 million in cash, or $42.50 per share. This represented a 23.6% premium to Blair's price at the announcement of the deal.

In our last research report on Blair, we suggested the company might go private, following a relatively huge transaction in which the company bought back more than half it outstanding shares. At the time, Blair was trading in the $24 range, so relative to that price, the buyout price of $42.50 represents a 75% gain in 5 months.

Former Net/Net
In years past, Blair's name was always at or near the top of the list (in terms of market cap) of companies trading below their net current asset value. In fact, if our recent report Four Years Later: My Top 10 Net/Nets Beat All Market Indexes had gone a little further, Blair would have been 12th on the list.

Disclosure: the author does not have a position in this stock.

BL 1-yr chart:

BL 1-yr chart

Click to read my original Blair research.