BJ’s Wholesale Club, Inc. is putting itself up for sale and there’s reportedly at least one company that is interested.
Recent reports claim that Amazon.com, Inc. (NASDAQ:AMZN) is interested in buying BJ’s Wholesale Club, Inc. The company is currently in talks with banks to begin the sales process. It may start distributing sales books in the next few weeks.
BJ’s Wholesale Club, Inc. is owned by CVC Capital Partners and Leonard Green & Partners. The two bought the company for $2.8 billion six years ago and are hoping to get between $4 billion and $4.5 billion from a sale. The decision to sell the company reportedly comes after scrapped plans for an initial public offering.
Amazon.com, Inc.’s interest in BJ’s Wholesale Club, Inc. is reportedly part of its efforts to expand into the physical retail market. BJ’s has 213 warehouse retail locations and 130 gas stations spread across 15 states. its focus on groceries and appliances may interest AMZN, reports New York Post.
It isn’t just Amazon.com, Inc. that may be interested in acquiring BJ’s Wholesale Club, Inc. Other companies that may be looking to buy the retail company include Bain Capital, Blackstone Group LP (NYSE:BX), KKR & Co. L.P. (NYSE:KKR), TPG and Wal-Mart Stores Inc (NYSE:WMT).
Amazon.com, Inc.’s expansion efforts include an attempt to open its own physical grocery store. The store doesn’t have cashiers or checkout lanes, and instead uses cameras to track customers purchases and charge their accounts. However, problems with the technology have caused the opening of the store to be delayed.
AMZN stock was up 1% as of noon Monday.