Tuesday said it had agreed to be acquired in a $700 million leveraged buyout offer.
The buyer is an affiliate of from Oak Hill Capital Partners, founded by investor Robert M. Bass, and includes members of the drug store chain's management team.
Under terms of the offer, Duane Reade's shareholders will receive $17.00 a share in cash, about 11% above the company's closing price of $15.22 Monday. The cash value of the deal is approximately $409 million dollars.
The company's chairman and CEO, Anthony Cuti, will stay on and have an equity stake in the new company.
Financing for the deal will be provided by Oak Hill Capital Partners, L.P. and an affiliate equity fund, Oak Hill Capital Management Partners, L.P. The debt financing will be provided by Banc of America Securities.