NEW YORK – Seven months after their first bid, Arkhouse Management and Brigade Capital Management remain ardent in their quest to acquire Macy’s Inc. and take it private.
This week, they jacked up their offer to roughly $6.9 billion, according to a Wall Street Journal report that cited unnamed sources.
“The new proposal is to acquire Macy’s stock that Arkhouse and Brigade Capital do not already own for $24.80 each, up from $24 per share offered in March, the report added. Arkhouse, which has a 4.4% stake in Macy’s, had earlier raised the offer price to $24 per share from $21,” Reuters reported, referencing the WSJ’s reporting.
The buy-out play began last December, when Arkhouse and Brigade approached Macy’s board of directors with their original $5.8 billion offer.
“The current bid of $24.80 represents a nearly 43% premium to Macy’s closing price on Dec. 8 when deal talks first emerged,” per Reuters.
Arkhouse scuffled with Macy’s in the spring, launching a proxy fight for control of the board. That was settled in April when the retail company agreed to seat two of the investor’s candidates on its board. At the time, the Arkhouse said it would continue to pursue a buyout and go-private transaction.
Macy’s Inc. has made no public statements about the buyout push since announcing the new board members on April 10.
To recap, here is how the action has unfolded:
January
- Macy’s Inc. rejects the $5.8 billion bid, saying the proposal lacks “compelling value.”
- The company also expresses serious reservations about the bidders’ ability to finance a deal.
- Arkhouse/Brigade lobby Macy’s Inc. to open its books for due diligence, saying they need more information to nail down financing.
- Macy’s refuses.
February
- Arkhouse mounts a proxy battle for Macy’s board of directors.
- Its nominees include former senior executives from Target Corp., Toys “R” Us and Sears Holding Corp. along with real estate investment firm principals.
- Macy’s Inc. announces it will shutter 150 underproductive Macy’s locations by the end of 2026 and step up investment in the remaining 350 go-forward Macy’s units.
- The move is part of a strategy the Macy’s Inc. calls “A Bold New Chapter.”
- Posting sluggish Q4 results, Macy’s says 2024 will be a transitional year.
March
- Arkhouse/Brigade up their offer to acquire Macy’s Inc. to $24.00 per share, or $6.6 billion.
- The offer also identifies Fortress Investment Group and One Investment Management US as contributors to the 50% equity component of the proposed transaction.
- In response, Macy’s Inc. releases a terse statement saying its board will review and evaluate the new offer.
April
- Macy’s strikes a deal with Arkhouse, immediately adding Richard (Ric) Clark and Richard (Rick) L. Markee to its board of directors.
- Clark’s experience includes nearly four decades in real estate, mergers and acquisitions and capital markets. Markee previously held senior leadership roles at Vitamin Shoppe Inc. and Toys “R” Us, Inc.
- In exchange, Arkhouse agrees to withdraw its slate of nominees, pulling the plug on its proxy fight for control of Macy’s board.
May
- Macy’s Inc. Q1 results beat expectations even though net income fell 60% to $62 million.
- Executives said Macy’s remained on track to close 50 stores this year, part of the 150 store closures is expects to make through 2026.