Medical apparel company Figs has turned down a takeover proposal from private equity firm Story3 Capital Partners, which valued the company at over $1bn, according to a report by the Wall Street Journal.
In a filing with the Securities and Exchange Commission, Figs stated that it remains confident in its independent strategy and future prospects, leading to the decision to reject Story3’s offer. The company’s board communicated this decision to Story3 in a letter sent on Thursday.
Following the announcement, Figs’ stock dropped 2.5%, settling at $5.97 in after-hours trading.
This decision comes after Story3 made an offer last month to buy all outstanding shares of Figs for $6 each, excluding those it already owned. At that time, Story3 and its affiliated funds held just over 1% of Figs’ shares.
Fortress Investment Group, a strategic partner of Story3, had previously indicated its readiness to provide the necessary debt financing for the acquisition.
Founded in 2013, Figs specialises in direct-to-consumer healthcare apparel, particularly known for its scrubs. The company went public in 2021 with a valuation exceeding $4.5bn at the time.
