This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

19 Retail Takeovers: Rumors Run Rampant

Build-A-Bear Workshop

Build-A-Bear Workshop (BBW) is seeking a buyer, according to reports.

The retailer, which allows shoppers to create personalized teddy bears, has approached private-equity firms, Bloomberg reported, citing sources familiar with the matter.

Barclays Capital is reportedly advising the company on a potential sale. Build-A-Bear Workshop has a market cap of $155.7 million.

Susquehanna Financial analyst Thomas Filandro believes a takeover of the company is highly likely, with both private equity or a strategic buyer having interest in Build-A-Bear.

"We believe a deal would make sense for both buyer and seller. Build-A-Bear's high cash flow generation, healthy balance sheet, reasonable inside ownership, unique brand concept offering an emotionally connective product and shopping experience, and brand presence both domestically and internationally, provide a solid platform for future growth," he wrote in a note.

This is not the first time Build-A-Bear eyed a sale. In 2007 the company said it was exploring "strategic alternatives," but that effort did not yield sufficient offers.

"But it was also the early stages of an epic contraction in credit and buyout activity," Needham analyst Sean McGowan wrote in a note.

At the time, Build-A-Bear's shares were hovering around $20. While the company has not recovered to 2007 levels of sales and profits, McGowan says the company is much stronger than it was 12 months ago.

"We believe that with Build-A-Bear's recent results suggesting a turnaround is well underway, and the private equity market for consumer companies showing strength this year, Build-A-Bear could be a good candidate for a buyout," McGowan wrote.

But he warns that a suitable buyer may not offer a price acceptable to the board and shareholders.

6 of 20

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,089.20 +2.57 0.02%
S&P 500 1,988.55 +1.54 0.08%
NASDAQ 4,469.8150 -3.8820 -0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs