Clifton, New Jersey-based Linens ‘n Things announced Wednesday that it had most likely reached $140 million (€118 million) in earnings before interest, taxes, depreciation and amortization for the year and that its sales in the fourth quarter were off less than 6 percent – two stipulations that had to be met for New York-based private equity firm Apollo Management to pursue its buyout of the chain.
There had reportedly been some question as to whether or not Linens could meet the obligations set forth by Apollo. The $1.3 billion deal, announced in November, valued Linens shares, which are traded on the New York Stock Exchange, at $28 a piece. At that time, Linens saw total sales drop 3.8 percent over the previous year, while same-store sales, which tracks receipts at stores open more than a year, dropped 10.2 percent.
Linens ‘n Things has 516 stores in 45 states and Canada.
Apollo, founded in 1990, has invested more than $12 billion globally. The firm has invested in a number of retailers including vitamin and health chain General Nutrition Centers, rent-to-own stores Rent-a-Center and grocer Dominick’s Supermarkets.