Hard-Surface Flooring Retailer LL Flooring's Shares Are Ticking Higher: What's Going On?

Private equity firm F9 Investments, LLC has proposed to acquire all the issued and outstanding shares of common stock of LL Flooring Holdings Inc LL for $3.00 per share.

F9 Investments, together with its affiliates, collectively owns approximately 8.8% of LL Flooring Holdings.

The proposed offer will be fully financed through cash on hand and borrowing under an existing revolving credit facility from an affiliate of F9. 

F9 noted that the value being offered reflects LL Flooring's deteriorating financial and operational performance, as disclosed in its third quarter 2023 results.

"We believe our offer represents a compelling, immediate, and certain cash value for LL's shareholders, in light of the Company's deteriorating financial condition and declining stock price, which in our view reflects the market's lack of confidence in the current Board's strategy," said F9's owner, Thomas Sullivan.

Also, Sullivan intends to nominate three candidates to LL Flooring's Board of Directors at the 2024 annual meeting of stockholders.

Also See: Hard-Surface Flooring Retailer LL Flooring Dodges Guidance: Here's Why

On May 26, 2023, F9 Investments presented a cash offer of $5.76 per share, which at that time represented a premium of over 100% of the stock's 52-week low of $2.75. The company's Board rejected the offer.

On August 14, 2023, LL Flooring announced that the Board of Directors was exploring strategic alternatives, including a potential sale, merger or other strategic transaction.

In October, Live Ventures Incorporated LIVE submitted a proposal to acquire LL Flooring for $5.85 per share in cash.

Price Action: LL shares are trading higher by 7.09% at $3.02 on the last check Tuesday.