On Friday, March 18th the shareholders of Jo-Ann Stores, Inc. approved a $1.6 billion merger with private equity firm Leonard Green & Associates that was proposed last December. According to Footnoted, Jo-Ann’s Chairman/CEO Darrell Webb stands to receive more than $29 million once the merger occurs, and if he is asked to leave his job within two years after the merger he will also receive an additional $8 million. With approximately 82% of shareholders voting, 99% were in favor of the merger agreement.
Jo-Ann’s operates 751 stores in 48 states, and Leonard Green & Associates is invested in The Container Store, Neiman Marcus Group, Sports Authority, David’s Bridal, and Whole Foods Market and has also agreed to purchase J. Crew for $3 billion.