buyout report lift BJ's Wholesale shares

Shares of BJ's Wholesale Club Inc. rose Wednesday after a report that two private-equity investors are preparing a joint bid to buy the company.

Leonard Green & Partners and CVC Capital Partners are expected next week to make a joint buyout offer that would value the warehouse retail chain at a minimum of $2.8 billion, the New York Post said late Tuesday night.

The offer would represent a 7 percent premium over Tuesday's closing price for shares of BJ's, the Post said.

Leonard Green already owns nearly 10 percent of BJ's, the Post said. The investment company convinced BJ's to put itself up for sale in February, the Post said. But it has had trouble finding partners to back a bid, the newspaper reported.

Leonard Green teamed up with CVC on an investment in Leslie's Swimming Pool Supply last fall, and on an unsuccessful bid last month for discount retailer Big Lots, the Post said.

No other bids for BJ's have been submitted, the Post said. Bids are due on June 16.

Representatives for BJ's and Leonard Green did not return calls seeking comment. A spokeswoman for CVC declined to comment on the report.

BJ's operates warehouse clubs that sell food, small appliances and other consumer goods. As of May 18, it ran 190 clubs in 15 states.

Shares of BJ's rose $1, or 2 percent, to $48.70 in afternoon trading.