After months of speculation and negotiations, Indigo, Canada’s largest book retailer, has agreed to go private. The company announced on Monday that it has been sold to a holding company led by its founder and CEO, Heather Reisman.
The deal, which is valued at $468 million, will see Indigo shareholders receive $18 per share in cash, representing a 43% premium to the company’s closing price on Friday. The sale is expected to close in the first quarter of 2021, pending regulatory and shareholder approvals.
In a statement, Reisman expressed her excitement about the future of Indigo as a private company. She stated, “This transaction will allow us to focus on our long-term strategy and continue to innovate and invest in our business, without the constraints of being a public company.”
Indigo has faced challenges in recent years, with the rise of online shopping and the decline of brick-and-mortar bookstores. The company has been working to diversify its offerings, expanding into home decor, gifts, and toys. However, the COVID-19 pandemic has further impacted the company’s sales, with many of its stores closed for several months.
Despite these challenges, Indigo has remained a beloved brand in Canada, known for its wide selection of books and cozy in-store experience. Reisman has been at the helm of the company since its inception in 1996 and has been credited with its success and growth.
The sale to the holding company, which is owned by Reisman and her husband, will allow Indigo to operate with more flexibility and make strategic decisions without the pressure of meeting quarterly earnings expectations. It also gives Reisman the opportunity to take the company in new directions and continue to adapt to the changing retail landscape.
The news of Indigo going private has been met with mixed reactions from analysts and investors. Some see it as a smart move for the company, while others are concerned about the lack of transparency that comes with being a private company.
In the end, only time will tell if this decision will benefit Indigo in the long run. But for now, it seems that the company is looking forward to a new chapter as a private entity, with Reisman leading the way.
