Restoration Hardware accepts lower private equity offer

Share this content:
Restoration Hardware accepts lower private equity offer
Restoration Hardware accepts lower private equity offer

Restoration Hardware Inc. has accepted a takeover offer from Catterton Partners for $179 million, significantly less than the $279 million the private equity firm offered before Restoration Hardware's holiday sales results were posted.

Restoration Hardware reported that net revenue for the nine-week period ended January 5 totaled $171.5 million, a 1% drop compared to the previous year. During the 2006 holiday season, the company posted a 22% sales increase.

Restoration Hardware said late Thursday that it had entered into an amendment to its previously announced merger agreement with Catterton to sell all of the multichannel retailer's outstanding shares for $4.50 in cash. Additionally, Catterton is providing Restoration Hardware with a $25 million loan for working capital. The amendment also extends the termination date for the merger agreement from April 30 to June 30.

“The amended merger agreement today comes as the company and the home-related retail sector face increased pressure,“ said Restoration Hardware in a statement.

Restoration Hardware will continue to solicit proposals from third parties until February 28.

In November, Sears Holdings Corp. made an offer to acquire Restoration Hardware for $6.75 per share in cash. However, the two companies had difficulty coming to terms over a confidentiality agreement that would have prevented Sears from making a tender offer outside of the process. Soon after, Sears started facing financial troubles of its own, with third quarter net income plummeting to $2 million from $196 million in the previous year and total domestic comparable store sales declining 4.6%. For the nine-week period ended January 5, total domestic comparable store sales declined 3.5%. Sears could not be reached for comment.

close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above