ShopKo said an affiliate of Minneapolis-based private equity firm Goldner Hawn Johnson and Morrison will pay $24 a share for nearly three million ShopKo shares.
The affiliate will also assume some $330 million in ShopKo debt. ShopKo operates the ShopKo and Pamida chains.
News of the deal helped push ShopKo shares up nearly 13 percent to $25.97 on the New York Stock Exchange Friday morning.
ShopKo said its chairman, Jack Eugster, has resigned and president and CEO Sam Duncan will no longer stay with the company after the deal is closed some time in the second quarter.
ShopKo said Thursday its same-store sales at ShopKo stores fell slightly last month, offsetting gains at Pamida.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.