Catterton Partners Taking Restoration Hardware Private

November 8, 2007  by in UnCategorized   

By Home Furnishings Business in on November 2007 Restoration Hardware Inc., Corte Madera, Calif., announced Thursday that it has reached merger agreement with an affiliate of private equity firm Catterton Partners. The deal, expected to close early next year, is worth $6.70 a share--or a 150 percent premium on share price at closing Nov.7.

The total transaction is worth around $267 million.

Gary Friedman, Restoration Hardware’s Chairman, president and CEO, will participate with Catterton Partners in the transaction. In addition, several institutional stockholders of Restoration Hardware have agreed to invest in the transaction or exchange a portion of their Restoration Hardware common stock for equity of the purchaser or one of its affiliates.

“We are pleased to announce this transaction, which delivers significant value to our stockholders,” said Mr. Friedman. “In addition, we are excited about the opportunity to work with Catterton Partners, which has a successful track record and significant experience in the consumer and retail industries. We believe this partnership will provide us with important resources to execute our operating and growth strategies over the long-term.”

J. Michael Chu, managing partner of Catterton Partners, said, “We are pleased to enter into this partnership and look forward to building on the accomplishments of Gary and his team. Since joining the company several years ago, they have established the Restoration Hardware brand as a leader in the premium home furnishings category. By combining our respective expertise, we believe we can continue to evolve and grow the brand and become a dynamic force in the marketplace.”