CHAPTERS INC. TO BUY CHAPTERS ONLINE AND PEGASUS WHOLESALE
By Adnews Staff
Toronto-based book chain Chapters Inc. announced Friday plans to purchase both Chapters Online and Pegasus Wholesale, bringing its online and wholesale divisions in-house. Both purchases remain subject to regulatory approval including shareholder and the Competition Bureau. "These actions are the culmination of a long-term plan that will enable Chapters to maximize shareholder value by bringing a greater focus to its highly success retail operation," Larry Stevenson, Chapters founder and chief executive said in a statement. The book retailer, which currently owns a 69% stake of its online counterpart Chapters Online, will pay Chapters Online minority shareholders Sequoia Capital $3.40 per share for its 11% stake. Chapters also announced plans to buy out the remaining 18% of national book wholesaler Pegasus from minority shareholder Canadian General Capital Inc. for $7.5 million in securities issued by Chapters Inc. Chapters Inc. currently has an 82% stake in Pegasus. The announcements follow a $63 million bid from Heather Reisman, CEO of Indigo Books, and her husband Gerald Schwartz to acquire 50.1% of the Chapters chain late last month. Chapters rejected that offer.