LL Flooring confirmed it has received an “unsolicited, non-binding proposal” from Cabinets To Go to acquire all of the outstanding shares of the company for $5.76 per share in cash. Cabinets To Go is owned by LL Flooring’s founder and former CEO Tom Sullivan. A 13-D form filed last week showed Sullivan had amassed a 9.45% stake in LL Flooring, according to Seeking Alpha.
Sullivan, who resigned from the company’s board of directors in 2017 after the company eliminated his position as an employee, previously attempted to purchase his former company in 2019.
LL Flooring said its board of directors will review and consider the proposal.
“The Company believes that the long-term fundamentals of LL Flooring’s business are strong and believes that it is successfully executing on its six core growth strategies,” the retail chain said in a statement. “LL Flooring believes that it is well positioned to take advantage of the medium- to long-term tailwinds for repair and remodel spending, and believes that the Company’s unique positioning differentiates it from others in the market.”
Cabinets To Go and LL Flooring have had contention in the past, with LL Flooring, formerly Lumber Liquidators, suing Cabinets To Go for what it called a breach of contract. The lawsuit was settled in late 2019.
Cabinets To Go’s latest proposal caused LL Flooring’s stock to surge 21%, according to MarketWatch.
