Private equity firm to acquire Restoration Hardware for $267 million

Private equity firm Catterton Partners will acquire Restoration Hardware Inc. for approximately $267 million.

Under the terms of the agreement, all outstanding shares of Restoration Hardware will be acquired for a price per share equal to $6.70 in cash. This represents a 150% premium on the closing price of Restoration Hardware common stock on November 7, the last trading day prior to the announcement of the deal. Gary Friedman, Restoration Hardware's chairman/president and CEO, and several institutional stockholders are investing in the transaction.

Corte Madera, CA-based Restoration Hardware is in the midst of a planned strategy to improve the productivity of its supply chain. Earlier this year, the company retrofitted its furniture distribution centers and consolidated its small-package direct operations. It also recently signed a lease for a new distribution center, enabling it to phase out a distribution center that is run by a third party. Additional plans call for installing a new warehouse management system, enhancing sourcing and product management and installing a new order management system.

Catterton Partners, based in Greenwich, CT, has led investments in companies such as Build-A-Bear Workshop, Kettle Foods and Frederic Fekkai.