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99 Cents Store Likely to be Sold for $1.6 Billion

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Looks like all those pennies have added up to a profitable business plan: the 99 cent store announced today that it will likely be bought out for $1.6 billion, reports the AP.

The company, which is based on the City of Commerce and has 214 stores in California, received the offer from affiliates of the investment firm Ares Management LLC and the Canada Pension Plan Investment Board. The $1.6 billion comes from shares of the 99 Cents store being picked up at $22 each.

Members of the family that founded the stores, the Schiffer-Golds, support the deal, as does the 99 Cents store's board. The deal would allow the Schiffer-Golds to retain a minority stake in the company.

"I am pleased to announce this agreement as it delivers significant value to our shareholders," the company's CEO Eric Schiffer said in a statement on the company's website. "We have come to know and respect Ares Management and CPPIB through this process and we believe they will be excellent partners and help us achieve our long term goals as a company."

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The purchase still has to be approved by shareholders. If the deal goes through, it will likely take effect as soon as the first quarter of 2012.