Arkhouse and Brigade Capital Management increase offer for Macy’s

Arkhouse Management and Brigade Capital Management are bidding to buy Macy's in a deal now worth $6.6 billion.
Arkhouse Management and Brigade Capital Management are bidding to buy Macy's in a deal now worth $6.6 billion.

Arkhouse Management and Brigade Capital Management are bidding to buy Macy’s in a deal now worth $6.6 billion.

Arkhouse Management and Brigade Capital Management have announced an increased offer to acquire Macy’s in a deal now valued at $6.6 billion. 

The investment firms have submitted an all-cash proposal of $24 for each remaining share in Macy’s, up from their earlier offer of $21 per share.

Previous Rejection and Concerns

Macy’s had rejected the previous deal, valued at $5.8 billion, in January. The retailer cited concerns about the financing plan and perceived lack of compelling value in the proposal.

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Frustration with Macy’s Board

In a joint statement, Arkhouse managing partners Gavriel Kahane and Jonathon Blackwell expressed frustration with Macy’s board for what they described as delay tactics and a refusal to engage. However, they reiterated their commitment to completing the transaction.

Openness to Address Concerns

Kahane and Blackwell stated that they had made efforts to address Macy’s concerns and were willing to increase the purchase price further, subject to customary due diligence.

Confirmation by Macy’s

Macy’s confirmed receipt of the revised proposal, describing it as unsolicited and non-binding. The company stated that its board would carefully review the offer and refrain from further comment until the evaluation was complete.

Board Nomination and Financing Information

Last month, Arkhouse moved to nominate nine people for Macy’s board. Macy’s had requested additional financing information, but Arkhouse instead sought an extension of the director nomination window. Macy’s rejected the request, leading Arkhouse to nominate directors.

Gary Monroe

Gary Monroe is a seasoned contributor to the Los Angeles Business Magazine, where he offers insightful analysis on local business trends and economic developments. With a focus on Los Angeles' dynamic commercial landscape, Gary's articles provide valuable perspectives for entrepreneurs and business professionals in the city.

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