Sears Offer Throws Wrench into Restoration Hardware Deal
Restoration Hardware has a deal with Catterton Partners to take itself private. But that deal now appears as though it may be in jeopardy after Sears Holdings recently bought nearly 14 percent of Restoration Hardware’s stock while signaling it is considering making a bid for the entire company.
According to a 13D filing with the Securities and Exchange Commission (SEC), Sears Holdings’ chairman Edward Lampert and another member of the company’s board first contacted a non-management director at Restoration Hardware about a possible deal in June of this year.
In its filing, Sears Holdings said that it had made an offer of $4 a share for Restoration Hardware in October but the bid was rejected. On Nov. 8, Restoration Hardware announced its deal with Catterton Partners for $6.70 a share.
At the time the deal with Catterton Partners was signed, Gary
Friedman, chairman, president and chief executive officer at Restoration Hardware, said in a press release, “We are pleased to announce this transaction, which delivers significant value to our stockholders,” said Mr. Friedman. “In addition, we are excited about the opportunity to work with Catterton Partners, which has a successful track record and significant experience in the consumer and retail industries. We believe this partnership will provide us with important resources to execute our operating and growth strategies over the long-term.”
Discussion Questions: What do you make of Sears Holdings’ bid to acquire shares of and possibly a controlling interest in Restoration Hardware? What would Sears Holdings’ ownership mean for Restoration Hardware? What would Catterton Partners ownership mean for the company?
- Sears buys stake in Restoration Hardware – The Associated Press/BusinessWeek
- SEC EDGAR Filing Information – Securities & Exchange Commission
- Restoration Hardware, Inc. Signs Merger Agreement With Catterton Partners – Restoration Hardware/Catterton Partners/PRNewswire-FirstCall