The Management Buyout of White Hen Pantry, Inc.

Posted: 7 Jul 1997

See all articles by Jeffrey Allen

Jeffrey Allen

affiliation not provided to SSRN

John J. McConnell

Purdue University

Date Written: 1995

Abstract

SUBJECT AREAS: Corporate restructuring; LBOs; valuation.

CASE SETTING: 1985, LBO in Convenience Store Industry.

Management of White Hen Pantry, a subsidiary of Jewel Stores, undertook a leveraged buyout of the subsidiary in 1985 with the assistance of PruCapital. The case focuses on the valuation of the subsidiary and the structure of the financing of the transaction. The case demonstrates how to construct cash flow forecasts, how investment bankers function, and how management of a subsidiary decided to undertake the LBO. The solution employs the Adjusted Present Value (APV) approach to analyzing WHP. We have used the case at the end of our first year core course, but the case can also be used in a course on corporate restructuring.

JEL Classification: G34, L81

Suggested Citation

Allen, Jeffrey and McConnell, John J., The Management Buyout of White Hen Pantry, Inc. (1995). Available at SSRN: https://ssrn.com/abstract=9289

Jeffrey Allen

affiliation not provided to SSRN

John J. McConnell (Contact Author)

Purdue University ( email )

MGMT, KRAN
403 West State St.
West Lafayette, IN 47907-2056
United States
765-494-5910 (Phone)
765-494-7863 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
2,038
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information