Live Ventures Incorporated looks to acquire LL Flooring
Live Ventures Incorporated, a holding company specializing in the retail and flooring industries, has submitted a non-binding proposal to acquire LL Flooring Holdings for $5.85 per share in an all-cash transaction.
The offer represents a 106% premium to LL Flooring’s stock price on October 6, 2023. The offer is also a 94.4% premium above the flooring retailer’s 30-day average stock price.
In a letter sent to the LL Flooring Board of Directors, Live Ventures President and CEO John Issac wrote, “Our goal is to facilitate constructive discussions with the band enter into a mutually agreeable transaction that is in the best interests of all LL Flooring shareholders.”
Issac also noted that Isaac Capital Group, an investment firm that he personally controls and manages, “has made a significant investment in LL Flooring and is a top-five shareholder, currently owning over 4% of the company’s outstanding common stock.”
In response to the proposal from Live Ventures, LL Flooring issued a statement: "As part of this process, the board will consider a wide range of options for the Company including, among other things, a potential sale, merger or other strategic transaction."
On Aug. 14, LL Flooring issued a statement saying its board was exploring "strategic alternatives" to maximize shareholder value.
The announcement followed a dismal second quarter financial performance including net sales falling 21% to $236.4 million as comp store sales decreased 22.2% during the period. LL Flooring also reported the closing of one store in the second quarter.
Net sales for the first half of 2023 have dropped 17% to $477.1 million.
LL Flooring also posted a net loss of $39 million for the second quarter compared to a net income of $2.7 million for the same period a year ago. In the first quarter, LL Flooring reported a $10.6 million net loss.
This past June, the retailer's board unanimously rejected an unsolicited, non-binding proposal from Cabinets To Go, LLC.
Cabinets To Go, a subsidiary of F9 Brands, Inc., had proposed acquiring all of LL Flooring’s outstanding shares for $5.76 per share in cash. LL Flooring acknowledged receipt of the unsolicited proposal on May 30.
Shares of LL Flooring closed at $2.93 on Oct. 11 but jumped well above a price of $4 per share this afternoon.
In it's statement regarding the latest offer, LL Flooring also said, "Consistent with its fiduciary duties and in consultation with its financial and legal advisors, the LL Flooring Board of Directors will carefully review and consider the proposal from Live Ventures in the context of LL Flooring’s strategic alternatives process to determine the course of action that it believes is in the best interests of the company and all of its shareholders, which will include inviting Live Ventures to participate in the ongoing strategic review process on similar terms as others."
As of the end of the second quarter, the flooring retailer operated 442 stores.
The company formerly operated under the Lumber Liquidators banner.
