LL - LL Flooring jumps as it plans to explore alternatives possible sale

2023-08-14 17:14:11 ET

LL Flooring ( NYSE: LL ) soared 13% in after hours trading after saying that it planned to explore strategic alternatives, including a potential sale of the company.

The flooring retailer will explore a potential sale, merger, or other transaction, according to a statement on Monday.

The news comes after the company rejected a non-binding proposal from Cabinets To Go for $5.76 per share in late June.

LL Flooring said "in light of external interest in the Company, the Board and management are taking the opportunity to explore a range of potential strategic alternatives to maximize shareholder value," Nancy Taylor, independent chairperson of the LL board, said in the statement.

As the board noted at the time of the rejection, it remains open to considering a transaction that "appropriately reflects" the company's value and its prospects.

The LL Flooring ( LL ) rejection came after the former founder of Lumber Liquidators, which changed its name to LL Flooring, made an offer for the flooring chain in May after attempting to buy it in 2019. LL founder Tom Sullivan, through the F9 Group, is trying to combine LL with Cabinets To Go, another home-improvement retailer he founded.

JPMorgan Securities LLC is serving as the financial advisor to LL Flooring, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as its legal advisor.

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