The acquiring company is controlled by  Apollo Management, L.P., an investment group. Co-investors include  NRDC Real Estate Advisors I, LLC.

Apollo has received a commitment from Bear, Stearns & Co. Inc. and UBS Securities LLC to provide the debt financing for the transaction.

Peter Copses, a senior partner of Apollo, said the investment company was pleased about the prospect of acquiring Linens 'n Things, which operates over 500 home goods stores in the US and Canada.

 "We look forward to partnering with the management team to continue to build a world class retailer focused on its customers, vendors and employees. Apollo has had tremendous success investing in retail businesses in the past and we expect Linens 'n Things to prosper."

The parties currently anticipate consummating the merger in the first or early second quarter of 2006. Upon the closing of the merger, shares of Linens 'n Things  will be privately held. The company's stock will  no longer be listed on the NYSE.

The consummation of the merger is subject to customary closing conditions including the approval of Linens 'n Things stockholders, the funding of the contemplated debt financing, the expiration of antitrust waiting periods, and no material adverse change in the company's business.

The debt financing for the transaction is subject to various conditions, including Linens 'n Things achieving EBITDA of not less than $140 million for the full 2005 fiscal year and comparable net sales of not less than negative 6% for the 2005 fourth quarter, as well as other customary conditions for a leveraged acquisition financing.

Linens 'n Things, with 2004 sales of $2.7 billion, is a large-format retailer of  home textiles, housewares and home accessories.

As of September 30, 2005 Linens was operating 516 stores in 45 states and five provinces across the United States and Canada.

Apollo is a private investment firm.  Since its inception in 1990, Apollo has managed the investment of more than $12 billion in a wide variety of industries, both domestically and internationally.

During its history, Apollo has made several investments in retail-oriented businesses, including General Nutrition Centers, Inc., Rent-A-Center, Inc., Ralphs Grocery Company, Dominick's Supermarkets and Zale Corp.

NRDC Real Estate Advisors I, LLC is a partnership between the principals of National Realty & Development Corp. and principals of Apollo Real Estate Advisors. National Realty & Development Corp. are the owners and developers of over 14 million square feet of shopping centers throughout the United States.