Walmart Stores Inc. (WMT)’s stock price is down about thirty percent year-to-date, and some industry analysts think the retail giant should spin out its Sam’s Club business to its shareholders. A spinoff would allow each of the struggling chains to better focus on reviving growth independent of each other, according to The Deal’s Richard Collings. Collings believes Sam’s Club’s enterprise value may be around $31 billion. As far as Sam’s Club is concerned, if it wants to grow its business in order to better compete with rival Costco Wholesale Corp. (COST), the company could seek to acquire BJ’s Wholesale Club Inc. BJ’s is owned by private equity firms Leonard Green & Partners LP and CVC Capital Partners Ltd. The two firms have already more than recovered the equity invested into the discounter, and have owned it since 2011, making it ripe for a sale. Westborough, Mass.-based BJ’s Wholesale has revenue in the neighborhood of $14 billion and has done well enough to support two dividend recapitalizations valued at nearly $1.1 billion to its owners. The Deal’s Senior Reporter has the details from New York.
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