Sears Tops Private Equity Offer for Restoration
By Staff -- Gifts & Decorative Accessories, 11/27/2007 8:26:00 AM
New York — Sears Holdings, parent company of the Sears and Kmart retail chains, is prepared to offer $6.75 a share for home furnishings retail chain Restoration Hardware, Corte Madera, CA, topping the previous $6.70-per-share buyout offer by private equity firm Catterton Partners. Sears previously acquired an almost 14 percent share of Restoration. In an SEC filing, Sears said it reiterated in a Nov. 23 letter, a request to enter a confidentiality agreement with Restoration Hardware.
"Sears is an American icon," said Ray Hemmig, chairman of the Independent Committee. "We are flattered that it is interested in learning more about our company. We welcome its participation in the process along with the other interested parties. However, the Committee is firmly committed to a fair process that will yield the best results for all stockholders and believes that process is best served through all parties agreeing to the proposed standstill terms without preferential treatment of one party over another."
Under the terms of Restoration’s previous agreement with Catterton, the Independent Committee will solicit competing proposals from third parties until December 13. If another offer is accepted, Restoration will pay Catterton a $10.68 million termination fee.
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