Barnes & Noble Inc said on Monday it plans to buy Barnes & Noble College Booksellers Inc for $596 million, reuniting the Barnes & Noble brand, and its shares jumped more than 12 percent.
In connection with the acquisition, the U.S. bookstore operator also said it got commitments for a $1 billion four-year revolving credit facility, which would replace both companies' existing facilities.
Barnes & Noble said the deal should increase earnings per share by 30 to 35 percent on an annualized basis, based on its full-year forecast for $1.10 per share to $1.40 per share given in May.
Barnes & Noble College Booksellers is made up of 624 college bookstores which serve 4 million students and over 250,000 faculty members at college and universities across the United States.
Barnes & Noble shares rose $3.01 to $27.05 on the New York Stock Exchange.
(Reporting by Ian Sherr, editing by Gerald E. McCormick)