Two Advisory Firms Recommend Restoration Hardware Merger

June 2, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on June 2008 The 100-store Restoration Hardware chain, Corte Madera, Calif., announced Tuesday that two independent proxy advisory firms have recommended that stockholders vote in favor of a merger agreement in which private equity firm Catterton Partners would pay $4.50 per share. The vote is set for a June 12 shareholders meeting.

The news release said the recommendations of the two proxy advisory firms, Risk Metrics and Glass Lewis, are relied upon on by hundreds of major institutional investment funds, mutual funds and other investor groups. According to published reports, Sears Holdings had offered $4.55 per share, but Restoration Hardware officials had said that higher offer was subject to more uncertainties than the bid by Catterton. The retailer’s stock has ranged from $2.56 to $7.30 over the past year and closed at $3.93 Monday.

In RiskMetrics’ recommendation, analysts stated, “Given that the Catterton deal contains firm financing, we believe the this bid serves to maximize the highest value with certainty for Restoration shareholders.”