Restoration Hardware to go private in $267 million buyout
Deal is for 2.5 times latest closing stock price
Larry Thomas -- Furniture Today, November 8, 2007
CORTE MADERA, Calif. — Retailer Restoration Hardware has agreed to be taken private in a $267 million buyout led by an affiliate of Catterton Partners, a Connecticut-based private equity firm.
Under the agreement, Restoration Hardware’s stockholders will be paid $6.70 per share in cash — 2.5 times Wednesday’s closing price of $2.68 per share.
Gary Friedman, the retailer’s chairman, president and CEO, also will be an equity investor, as will several unnamed institutional stockholders. The institutional stockholders, generally pension funds and mutual fund companies, will exchange a portion of their stock for equity in the new entity.
“We are excited about the opportunity to work with Catterton Partners, which has a successful track record and significant experience in the consumer and retail industries,” said Friedman. “We believe this partnership will provide us with important resources to execute our operating and growth strategies over the long term.”
The transaction is expected to close in the first quarter of 2008.
Catterton’s previous retail investments include Build-A-Bear Workshop, P.F Chang’s and Outback Steakhouse.
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$267M Restoration sale set
Nov 11, 2007
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