Arkhouse Management and Brigade Capital have raised their bid for Macy's for nearly $1 billion, hoping to take the department store chain private.
The investor group said in a statement on Sunday that it is increasing its offer to acquire Macy's M,
to $24 a share, or about $6.6 billion, up from an offer of $21 a share, or about $5.8 billion, which Macy's board of directors rejected in January, saying at the time that it lacked “compelling value.”
Arkhouse and Brigade said their new offer represents a 51.3% premium to Macy's stock price as of Nov. 30, 2023, when they made their original offer. They note that it's a 33% premium to Macy's stock price as of Friday, when it closed at $18.01 per share.
“We remain frustrated by the delaying tactics adopted by the Macy’s board and its continued refusal to engage with our trusted group of buyers,” Arkhaus managing partners Gavriel Kahani and Jonathon Blackwell said in a statement. “However, we are steadfast in our commitment to implementing this transaction.”
In a statement on Sunday, Macy's confirmed it had received the proposal and said it would “carefully review and evaluate the latest proposal consistent with the fiduciary duties of the Board of Directors and in consultation with its financial and legal advisors.” A Messi spokesman said there was no further comment.
Macy's announced a restructuring plan last week that includes closing 150 stores, including its popular flagship store in downtown San Francisco. Separately, the company also reported fourth-quarter earnings that beat expectations.
“Although the restructuring plan unveiled by Macy's last week failed to inspire investors, its fourth-quarter earnings and year-end results give us more confidence in the company's long-term prospects if it is reoriented as a private company,” Kahane and Blackwell said. Sunday.
Macy's shares are down about 10% year to date, and are down 21% over the past 12 months, compared with the S&P 500's SPX gain of 8% in 2024 and gains of 27% over the past year.
