P.M. BRIEFING : Wal-Mart to Buy Wholesale Club
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From Times Wire Services
BENTONVILLE, Ark. — Wal-Mart Stores Inc., which has been aggressively expanding its chain of retail stores, today said it will buy Wholesale Club Inc. for $21 a share, valuing the operator of 27 membership clubs at about $163.8 million.
Following the news, Wholesale Club’s shares jumped $4.125, or 27%, to $19.875 in over-the-counter trading.
Wal-Mart said the acquisition would complement its Sam’s Wholesale Club division. Indianapolis-based Wholesale Club Inc., with 7.8 million shares outstanding, operates in six states and had sales of $330 million for the first half ended Aug. 4.
