Arkhouse Management, a New York-based investment firm that takes a private equity approach to public markets investing, has, with investment partner Brigade Capital Management, upped its all-cash proposal to acquire US retail chain Macy’s to $24.00 per share.
The firms have also disclosed additional information about their financing, including identifying Fortress Investment Group (Fortress) and One Investment Management US (OneIM) as equity capital partners for the proposed transaction.
The revised offer represents a 51.3% premium to Macy’s unaffected share price on 30 November, 2023, the day prior to Arkhouse and Brigade submitting their original $21 per share proposal on 1 December, 2023, and a 33.3% premium to where the company’s shares closed on 1 March, 2024.
In a statement, Gavriel Kahane and Jonathon Blackwell, Arkhouse Managing Partners, said: “We remain frustrated by the delay tactics adopted by Macy’s Board of Directors and its continued refusal to engage with our credible buyer group. Nonetheless, we are steadfast in our commitment to execute this transaction.”
Last week, Macy’s unveiled a restructuring plan that Arkhouse says ‘failed to inspire investors”, although the company’s Q45 earnings and year-end results have given it “further confidence in the long-term prospects of the Company if redirected as a private company”.
