Restoration Hardware in final acquisition stage
Heath E. Combs -- Home Textiles Today, June 13, 2008
Corte Madera, Calif. – Restoration Hardware cleared two hurdles in its quest to be acquired by Catterton Partners: shareholders approval of the merger plan and a tentative settlement of a litigation, under which it will pay about $3.7 million to non-insiders.
At a special meeting yesterday, RH shareholders overwhelmingly approved the merger with Catterton.
Under terms of the legal settlement – of a case filed in the Superior Court of the State of California – the home décor specialty retailer plans to pay the $3.7 million (less plaintiff’s legal fees) to RH shareholders “other than those shareholders participating with Catterton Partners in the transaction or those shareholders who are also executive officers or directors of Restoration Hardware.”
“Despite our view that the allegations in the lawsuit are without merit, Restoration Hardware felt it was in the best interests of its shareholders to settle the case to expedite the closing of the merger,” said Raymond Hemmig, a director of RH.