Sears gives acquisition draft to Restoration Hardware
December 14, 2007-- Home Textiles Today,
Hoffman Estates, Ill. – Merchandising conglomerate Sears Holdings yesterday formally proposed an all-cash bid of $6.75 per share in its acquisition move on home furnishings specialty retailer Restoration Hardware.
The Sears proposal would surpass the approximately $260 million bid made Nov. 8 by investment firm Catterton Partners. The Catterton offer (proposed through its Home Holdings entity) was set at $6.70 per share.
Sears Holdings, which first expressed its acquisition interest to RH executives in June 2007, recently became the largest stockholder in Corte Madera, Calif.-based Restoration Hardware (RH) with 13.6% of voting shares. Under the terms of the standing agreement between RH and Catterton, Thursday, Dec. 13 was the last day that RH was to solicit competing proposals for a third-party transaction.
The Sears proposal, delivered in draft form to RH, gives Sears time to further evaluate the company’s finances and some maneuvering room as to how it may ultimately effect an acquisition.