Shares of hard-surface flooring retailer LL Flooring (NYSE:LL) skyrocketed in today’s pre-market session after the investment firm Live Ventures (NASDAQ:LIVE) offered to acquire it for nearly $180 million, according to Reuters.
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How Much is LL Flooring Worth?
LL began exploring strategic alternatives in August, and the $5.85 per share offer from Live Ventures points to a nearly 100% premium over LL’s closing price yesterday. In August, Tom Sullivan, the Founder of LL, had withdrawn a $5.76 per share takeover offer for the company.
Live Ventures is focused on middle-market companies. It already owns Flooring Liquidators and Marquis Industries and generated sales of roughly $290 million last year. LL’s footprint of 442 stores across the U.S. could potentially provide opportunities for synergy between the two companies.
In a letter to the Board of LL, Jon Isaac, the CEO of Live Ventures, noted that, unless LL enters into a deal with a “well-capitalized acquirer,” the company’s share price will continue to plummet.
Over the past three years, LL has seen its stock price erode by nearly 89%. In comparison, LIVE shares have soared by 152% during this period. Despite today’s jump, LL stock still remains a long way off from its December 2020 high of nearly $34.
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