Restoration Hardware Merging With Catterton Partners

Nov 08, 2007 8:22 PM  By

Home furnishings and decor merchant Restoration Hardware today announced a merger agreement with an affiliate of private equity firm Catterton Partners. The total equity value of the transaction is about $267 million.

The Corte Madera, CA-based multichannel merchant’s chairman/president/CEO Gary Friedman will participate with Catterton Partners in the transaction. Several institutional stockholders of Restoration Hardware have also agreed to invest in the transaction or exchange a portion of their common stock for equity of the purchaser or one of its affiliates.

Under the terms of the deal, all of the outstanding shares of Restoration Hardware (other than those exchanged by the participating stockholders) will be acquired for a price per share equal to $6.70 in cash. That’s a 150% premium to the closing price of Restoration Hardware common stock on Nov. 7, the last trading day prior to the announcement of the merger agreement.

A committee of the merchant’s board composed of independent directors negotiated the merger on behalf of Restoration Hardware, with help from independent financial and legal advisors. Restoration’s board of directors, on the unanimous recommendation of the independent committee, has approved the merger and recommends that the company’s stockholders adopt the deal.