Archhouse Management and Brigade Capital Management are increasing their offer to acquire Macy’s in a deal now valued at $6.6 billion.
The investment firm announced Sunday that it has made an all-cash offer of $24 for each of the remaining Macy’s shares it doesn’t already own — up from an earlier offer of $21 per share.
Messi rejected the previous deal, which was valued at $5.8 billion, in January. At the time, the retailer said its board reviewed the investment firm’s proposal and not only had concerns about the financial plan, but also felt it lacked “compelling value.”
In a joint statement on Sunday, Arkhouse managing partners Gavril Cahne and Jonathan Blackwell said they were “disappointed by the delaying tactics” by Macy’s board and its “continued refusal to engage” – but still to the transaction. were determined to complete.
Kahane and Blackwell added that they repeatedly tried to address the company’s concerns, and were open to raising the purchase price “subject to the need for customary reasons.”
Macy’s confirmed on Sunday that it had received a “revised, unsolicited, non-binding” proposal. The New York-based company said its board would carefully review the offer, and it did not intend to comment further until the evaluation is complete.
Last month, Arch House moved to nominate nine people for Macy’s board. Macy’s said at the time that it was seeking additional financial information — but it instead sent a letter to Archhouse requesting that the company extend its director nomination window by 10 days.
Archhouse, meanwhile, said it had provided additional financial details and requested a deadline extension in hopes of continuing to engage the firm privately. As this request was rejected, Archhouse added, the firm nominated directors.
On Tuesday, Macy’s announced it would close 150 stores over the next three years, including 50 by the end of the year following a fourth-quarter loss and declining sales. As part of the restructuring efforts, the department store chain also said it would upgrade its remaining 350 stores.