Shareholders to receive $36 per share in cash, a 15% premium to Wednesday’s close
PLANO, Texas — At Home Group has agreed to be acquired by funds affiliated with private equity firm Hellman & Friedman in an all-cash deal valued at $2.8 billion, the big-box home furnishings chain announced Thursday.
Under the terms of the agreement, which includes the assumption of debt by H&F, At Home stockholders will receive $36 per share in cash, which the company noted is a premium of about 17% to the company’s closing stock price May 4, and a roughly 25% premium to the 30-day volume-weighted average share price. It’s a 15% premium to Wednesday’s close of $31.29 per share. The deal is expected to close in the third quarter, subject to conditions, including approval by At Home stockholders. At Home can also shop for better deals during a 40-day “go shop” period.
Publicly-held At Home operated 226 stores in 40 states.
Hellman & Friedman is a global private equity firm with an investment approach focused on large-scale investments in high-quality growth businesses, the company said. “H&F seeks to partner with world-class management teams where its deep sector expertise, long-term orientation and collaborative partnership approach enable companies to flourish,” according to the release. It targets businesses in sectors including software & technology, financial services, healthcare, consumer & retail, and other business services.
“As we enter the next chapter for our company, H&F is the ideal partner to advance our At Home 2.0 long term strategy,” At Home CEO and Chairman Lee Bird said in a release announcing the deal. “Together with H&F, we will have the resources and flexibility to provide our customers with a differentiated experience that meets their evolving needs.”
Erik Ragatz, Partner at H&F, said, “As the leading value retailer of home décor offering unmatched breadth and depth of product assortment at everyday low prices, At Home is well positioned to continue its long track record of store expansion and growth.
“At Home’s differentiated, low-cost operating model is disruptive to the traditional home channels and provides a strong opportunity for market share gain. This acquisition is consistent with Hellman & Friedman’s strategy to invest in market-leading businesses with substantial runway for growth, and we are looking forward to partnering with At Home’s talented management team to help capture the significant market opportunity in front of the company.”