Home décor retailer At Home Group will be acquired by private equity firm Hellman & Friedman in a $2.8 billion deal.
Headquartered in Plano, TX, At Home currently operates 226 stores in 40 states that average just over 100,000 square feet and offer around 50,000 items.
Under the terms of the agreement, the retailer will become a privately held company, and stockholders will receive $36.00 per share in cash. This represents a premium of approximately 17% to At Home’s closing stock price of $30.67 on May 4, which was the last trading day before speculation of its acquisition began bubbling up in the media, with a premium of about 25% to the 30-day volume weighted average share price.
At Home reported net sales increases of 41% to $562 million in the fourth quarter, with comp-store sales increases of 31%. It recently opened a trio of stores Virginia, Oklahoma and North Carolina after temporarily halting expansion during the pandemic. It also opened its first store in New York City last month, as well as one in Indiana, in April.
“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,” said Lee Bird, At Home chairman and CEO. “Together with H&F, we will have the resources and flexibility to provide our customers with a differentiated experience that meets their evolving needs. This transaction is a testament to the achievements of our team members, and I would like to thank each of them for all they do each day to contribute to the success of At Home.”
The deal, which has been approved by the retailer’s board of directors but still needs shareholder approval, is expected to close in the third quarter of this year.