NEW YORK — Arkhouse Management and Brigade Capital Management are upping their offer to acquire Macy’s in a deal now valued at $6.6 billion.
The investment firms announced Sunday that they had submitted an all-cash proposal of $24 for each of the remaining shares in Macy’s they don’t already own — up from a earlier offer of $21 per share.
Macy’s rejected the previous deal, which was valued at $5.8 billion, in January. At the time, the retailer said that its board reviewed the investment firms’ proposal and not only had concerns about the financing plan, but also felt there was a “lack of compelling value.”
In a joint-statement Sunday, Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell said that they “remain frustrated by the delay tactics” from Macy’s board and its “continued refusal to engage” — but were still committed to completing the transaction.
Kahane and Blackwell added that they had repeatedly tried to address the company’s concerns, and were open to increasing the purchase price more “subject to the customary due diligence.”
Macy’s on Sunday confirmed that it had received the “revised, unsolicited, non-binding” proposal. The New York-based company said that its board would carefully review the offer, and that it did not intend to comment further until the evaluation was complete.
Last month, Arkhouse moved to nominate nine people for Macy’s board. Macy’s at the time said it had been seeking additional financing information — but that Arkhouse instead sent a letter requesting that the company extend its director nomination window by 10 days.
Arkhouse, meanwhile, said it had provided additional financing details and that the firm requested the deadline extension in hopes of continuing to engage privately. Since that request was rejected, Arkhouse added, the firm nominated directors.
On Tuesday, Macy’s announced it would close 150 namesake stores over the next three years including 50 by year-end after posting a fourth-quarter loss and declining sales. As part of restructuring efforts, the department store chain also said it would upgrade its remaining 350 stores.
Arkhouse and Brigade, two prominent investment firms, have increased their takeover offer for retail giant Macy’s to a staggering $6.6 billion. This move comes after Macy’s initially rejected their initial bid, which was rumored to be around $5 billion.
The increased offer from Arkhouse and Brigade is a clear indication of their strong interest in acquiring Macy’s and their determination to make this deal happen. The two firms see great potential in Macy’s and believe that with the right management and strategic direction, the company can thrive and regain its position as a leading retailer in the industry.
Macy’s, a household name in the retail world, has been facing challenges in recent years due to changing consumer preferences and increased competition from online retailers. The company has been struggling to adapt to the rapidly evolving retail landscape and has seen a decline in sales and profitability.
The takeover offer from Arkhouse and Brigade could provide Macy’s with the financial resources and expertise needed to turn things around. The firms have a track record of successfully investing in and revitalizing struggling companies, and they believe that they can do the same for Macy’s.
If the deal goes through, it could have far-reaching implications for the retail industry as a whole. It could potentially lead to a revitalization of Macy’s stores, an expansion of its online presence, and a renewed focus on customer experience and innovation.
However, it remains to be seen whether Macy’s will accept the increased offer from Arkhouse and Brigade. The company’s board of directors will need to carefully consider the terms of the deal and weigh the potential benefits against any potential risks or drawbacks.
Overall, the increased takeover offer from Arkhouse and Brigade signals a new chapter for Macy’s and could potentially pave the way for a brighter future for the iconic retailer. It will be interesting to see how this story unfolds in the coming weeks and months.
