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Sean Ryan is associate editor of Real Estate New Jersey.

CLIFTON, NJ- Apollo Management and NRDC Real Estate Advisors have closed on their $1.3-billion acquisition of Linens 'n Things. LNT will now be privately owned.

The locally based retailer put itself up for sale last year, after a 10.1% drop in same store sales. The acquisition was initially approved by stockholders last November. Under the terms of the agreement, Linens 'n Things' stockholders are to receive $28 per share in cash. Last year, sales for the chain were $2.7 billion.

Apollo Management has previously made investments in chains such as AMC Theaters, Rent-A-Center and Zale Corp. NRDC is an affiliate of National Realty & Development Corp. based in Purchase, NY. It owns and manages 14 million sf of retail.

"While we were disappointed when we were outbid for both Toys 'R Us and Pathmark, we believe that Linens 'n Things offers us a growth opportunity for both the US and Canada," says Richard A. Baker, president of NRDC. Equity for the acquisitions comes from affiliates of NRDC and Apollo, a Manhattan-based private investment firm.

The acquisition comes with some personnel changes. Norman Axelrod is out as chairman and CEO, and is replaced by Robert J. DiNicola. DiNicola was previously executive chainman of General Nutrition Center Inc., and chairman and CEO of Zale Corp.

The company's stated strategy is to improve sales per sf and improving productivity of the existing store base. The home textile, housewares and home accessories retailer has 542 stores in 47 states and six Canadian provinces. Average store size is 33,000 sf.

Instant Insights /

UPDATE: Linens Sale Closes

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