Done Deal for Toys R Us

The retailer agrees to a $6.6 billion buyout offer from three investment firms.
By TSC Staff ,

Updated from 8:15 a.m. EST

The game is up for

Toys R Us

(TOY)

. The struggling toy company said Thursday that it had agreed to a $6.6 billion buyout offer from a group of three private equity firms.

Kohlberg Kravis Roberts, Bain Capital and Vornado Realty Trust will be equal partners in the company. The offer is valued $26.75 a share. The buyers will also assume company debt.

"We are pleased to announce this transaction, which brings our strategic review to a very successful conclusion," the company said in something of an understatement.

Toys R Us, which saw its category killer status erased by low-cost competition from

Wal-Mart

(WMT) - Get Report

and others, has been seeking a buyer for its toy unit since last August. The company had planned to focus on its fast-growing Babies R Us unit, but later signaled a willingness to sell the whole company.

The deal is expected to close by July.

Shares were trading up 58 cents, ot 2.3%, to $25.35, having traded at $15 in early August.

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