In a strategic move, an investor consortium led by Arkhouse Management and Brigade Capital has extended a $5.8 billion privatization offer to Macy’s, aiming to take the department store chain private. The proposal, submitted on December 1, offers $21 per share, marking a substantial 20.76% premium over Macy’s closing stock price of $17.39 the previous Friday.
Arkhouse Management, known for its real estate focus, and Brigade Capital, a global asset manager, already hold a significant Macy’s stake through Arkhouse-managed funds. Discussions have taken place with Macy’s board, although the retailer’s stance on the proposal remains unclear. Arkhouse and Brigade assert that Macy’s is undervalued in public markets and express readiness to adjust the offer based on due diligence.
This bid comes amid positive signs for Macy’s, which recently exceeded analysts’ profit expectations, signaling improved performance with reduced inventories and strong beauty product demand. As Macy’s faces challenges, the offer could reshape its trajectory, with shares down nearly 15.79% for the year.
With a market capitalization of approximately $4.77 billion, Macy’s navigates a pivotal moment. The success of the privatization bid could redefine the future of this iconic retailer. Official comments are pending from Macy’s, Arkhouse, and Brigade.
