COLUMBUS, Ohio, Nov. 1, 2019 /PRNewswire/ -- Big Lots, Inc. (NYSE: BIG) today announced the completion of the sale of its distribution center in Rancho Cucamonga, California. The facility has been operating since 1984 and is being sold as a result of the company's move to a new distribution center in Apple Valley, California. Located in the Mojave Desert, the Apple Valley distribution center is a 1.4 million square foot facility that will improve speed to market, capacity, and service to stores with advanced automation including an automatic storage retrieval system, robotic depalletizers, carton shuttles, and carton sortation equipment. The company will utilize the Rancho Cucamonga distribution center on a leaseback arrangement until the Apple Valley distribution center is fully operational in spring 2020.
Cash consideration for the sale was $191 million. The company has reinvested $69 million of the proceeds to exercise a purchase option on its corporate headquarters in Columbus, Ohio, effected through a qualified intermediary to accommodate a tax-deferred exchange. Net after-tax proceeds of approximately $90 million will be used to pay down a portion of the outstanding balance on the company's unsecured line of credit. The company will recognize a one-time, pre-tax gain of approximately $179 million in the third quarter of fiscal 2019.
Commenting on today's announcement, Ronald A. Robins, Jr. (Rocky), Executive Vice President, General Counsel & Corporate Secretary of Big Lots stated, "We are pleased to complete the sale of our legacy California distribution center as part of the transition to our new, state-of-the-art distribution center. The net proceeds; in addition to allowing us to effect a like-kind exchange for our corporate headquarters, will strengthen our balance sheet and support the continued investments we are making as part of our Operation North Star strategic transformation."
About Big Lots
Headquartered in Columbus, Ohio, Big Lots, Inc. (NYSE: BIG) is a discount retailer operating 1,419 BIG LOTS stores in 47 states with product assortments in the merchandise categories of Furniture, Seasonal, Soft Home, Food, Consumables, Hard Home, and Electronics, Toys & Accessories. Our mission is to help people Live BIG and Save Lots. We strive to be the BIG difference for a better life by delivering unmatched value to our customers through surprise and delight, being a "best places to work" culture for our associates, rewarding our shareholders with consistent growth and top tier returns, and doing good in our communities as we do well. For more information about the Company, visit www.biglots.com.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and such statements are intended to qualify for the protection of the safe harbor provided by the Act. The words "anticipate," "estimate," "expect," "objective," "goal," "project," "intend," "plan," "believe," "will," "should," "may," "target," "forecast," "guidance," "outlook" and similar expressions generally identify forward-looking statements. Similarly, descriptions of our objectives, strategies, plans, goals or targets are also forward-looking statements. Forward-looking statements relate to the expectations of management as to future occurrences and trends, including statements expressing optimism or pessimism about future operating results or events and projected sales, earnings, capital expenditures and business strategy. Forward-looking statements are based upon a number of assumptions concerning future conditions that may ultimately prove to be inaccurate. Forward-looking statements are and will be based upon management's then-current views and assumptions regarding future events and operating performance and are applicable only as of the dates of such statements. Although we believe the expectations expressed in forward-looking statements are based on reasonable assumptions within the bounds of our knowledge, forward-looking statements, by their nature, involve risks, uncertainties and other factors, any one or a combination of which could materially affect our business, financial condition, results of operations or liquidity.
Forward-looking statements that we make herein and in other reports and releases are not guarantees of future performance and actual results may differ materially from those discussed in such forward-looking statements as a result of various factors, including, but not limited to, current economic and credit conditions, the cost of goods, our inability to successfully execute strategic initiatives, competitive pressures, economic pressures on our customers and us, the availability of brand name closeout merchandise, trade restrictions, freight costs, the risks discussed in the Risk Factors section of our most recent Annual Report on Form 10-K, and other factors discussed from time to time in our other filings with the SEC, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. This release should be read in conjunction with such filings, and you should consider all of these risks, uncertainties and other factors carefully in evaluating forward-looking statements.
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and SEC filings.
View original content to download multimedia:http://www.prnewswire.com/news-releases/big-lots-completes-the-sale-of-its-distribution-center-in-rancho-cucamonga-california-300949749.html
SOURCE Big Lots, Inc.