The management-led buyout of Restoration Hardware Inc. has been completed, thereby taking the multichannel merchant private. Restoration Hardware’s common stock ceased trading on NASDAQ prior to the opening of the market on June 18 and will no longer be listed on NASDAQ.
The deal was orchestrated by private equity firm Catterton Partners and Restoration Hardware chairman, president and CEO Gary Friedman. In connection with the closing, the parties said that private equity firm Tower Three Partners LLC has made an equity investment in Restoration Hardware that is approximately equal to the investment made by Catterton. Together, Catterton and Tower Three will have a controlling equity interest in Restoration Hardware.
“With Tower Three’s investment, we will gain access to a team of professionals with a proven track record of building operational excellence,” Friedman said in a statement. “Combined with Catterton’s expertise in developing and growing leading consumer brands, I believe this partnership will greatly benefit Restoration Hardware’s stakeholders, customers and team members.”
Under the terms of the agreement, all of the outstanding shares of common stock of Restoration Hardware will receive $4.50 per share in cash.
The upscale home furnishings brand accepted a $179 million bid from Catterton in January 2008, an adjustment from its original $279 million bid based on poor holiday sales. In November 2007, Sears Holdings Corp. had 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.
