P.M. BRIEFING : K mart to Purchase PACE
<i> From Times wire services </i>
TROY, Mich. —
Major retailer K mart Corp. will purchase PACE Membership Warehouse Inc. for about $322 million under an agreement announced today.
The board of PACE has approved the agreement and recommended that stockholders tender their shares, K mart and PACE said in a joint news release. K mart will pay $23 a share.
The acquisition of PACE would expand discounter K mart’s business in warehouse retailing. K mart already has a warehouse club chain, called Makro Inc., which has six outlets in the Cincinnati, Washington, Philadelphia, Baltimore and Cleveland areas.
After the takeover, PACE and Makro will continue to be operated under their present managements.
PACE, based in Aurora, Colo., has operations in 11 states.
