Vector Group, Ltd. chairman Bennett S. LeBow will invest $25 million into Borders Group, Inc., the bookseller announced today. The deal is expected to close today, and LeBow will have purchased 11.1 million shares in the bookseller.
Along with his sizable investment, LeBow joined the Board of Directors and was elected chairman of that board. Vector Group CEO Howard Lorber has also joined LeBow as a new member of the board. Current board chairman Richard McGuire has resigned from the board.
McGuire had this statement: “I am pleased to welcome Ben aboard as the new Chairman … Borders has made great progress in improving its financial and operating condition by exiting non-core businesses, reducing fixed costs, improving working capital efficiency, and focusing on operational excellence. More recently, the executive team has begun the process of repositioning the business and in-store experience to succeed in a future of electronic delivery. This effort is supported by an exceptional group of directors who were selected for the Board because of their expertise in the areas most critical to the company’s success. By adding Ben and Howard to this already talented group, the company is now in the best possible position to achieve its full potential.”
UPDATE: A previous version of this post attributed the investment to Vector Group.