Arkhouse Management and Brigade Capital are increasing their bid to buy Macy’s by nearly $1 billion, in hopes of taking the department store chain private.
In a statement on Sunday, the investor group said it was increasing its bid to acquire Macy’s M,
at $24 a share, or about $6.6 billion, up from the offer of $21 a share, or about $5.8 billion, that Macy’s board rejected in January, saying all era that lacked “convincing value”.
Arkhouse and Brigade said their new offer represents a 51.3% premium to Macy’s stock price as of Nov. 30, 2023, when they submitted their original proposal. And they noted that that’s a 33% premium to Macy’s stock price on Friday, when it closed at $18.01 a share.
“We remain frustrated with the delaying tactics employed by the Macy’s Board of Directors and its continued refusal to engage with our credible shopper group,” Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell said in a statement. “However, we remain steadfast in our commitment to completing this transaction.”
In a statement on Sunday, Macy’s confirmed it had received the offer and said it “will carefully review and evaluate the latest proposal consistent with the board’s fiduciary duties and in consultation with its financial and legal advisors.” A Macy’s spokeswoman said there was no further comment.
Macy’s announced last week a restructuring plan that includes closing 150 stores, including its iconic flagship store in downtown San Francisco. Separately, the company also announced fourth-quarter earnings that beat expectations.
“Although the restructuring plan presented by Macy’s last week failed to inspire investors, fourth-quarter earnings and year-end results gave us further confidence in the company’s long-term prospects if redirected as a private company,” they stated Kahane and Blackwell Sunday.
Macy’s shares are down about 10% year to date and have fallen 21% over the past 12 months, compared with the S&P 500’s SPX’s 8% gain in 2024 and 27% gain over the past year.