The deal is an all-cash transaction, with the assumption of debt. Plano, Texas-based At Home operates 226 stores in 40 states, offering up to 50,000 on-trend home products. The acquisition comes after At Home recently opened its first store in New York City. The deal will take At Home off the New York Stock Exchange and make it a privately held company.
Under terms of the deal, At Home shareholders will receive $36 per share in cash--a 17% premium of the company’s May 4 stock price of $30.67, prior to media speculation about a deal. The $36 figure is also a 25% premium of the 30-day volume weighted average share price.
“As we enter the next chapter for our company, H&F is the ideal partner to advance our At Home 2.0 long term strategy,” Lee Bird, chairman and CEO of At Home, said in a statement. “Together with H&F, we will have the resources and flexibility to provide our customers with a differentiated experience that meets their evolving needs.
The deal was negotiated by independent contractors on a Special Committee of its Board of Directors, with the assistance of independent financial and legal advisors.
“After a thorough evaluation and diligent and thoughtful deliberations in consultation with our independent advisors, we are pleased to reach this agreement, which provides stockholders with immediate and substantial value for their investment,” Phil Francis, At Home’s lead independent director and chair of the Special Committee of the Board of Directors, said in a statement.
The deal is expected to close the third quarter of 2021, and is subject to closing conditions and approvals.
“As the leading value retailer of home décor offering unmatched breadth and depth of product assortment at everyday low prices, At Home is well positioned to continue its long track record of store expansion and growth,” Erik Ragatz, partner at H&F, said in a statement. “At Home’s differentiated, low-cost operating model is disruptive to the traditional home channels and provides a strong opportunity for market share gain. This acquisition is consistent with Hellman & Friedman’s strategy to invest in market-leading businesses with substantial runway for growth, and we are looking forward to partnering with At Home’s talented management team to help capture the significant market opportunity in front of the Company.”