Restoration Hardware Shareholders Approve Merger

June 12, 2008  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on June 2008 Restoration Hardware shareholders overwhelmingly approved the sale of the 110-store chain to a private equity firm, Catterton Partners, for $4.50 per share Thursday.

“We are pleased with the outcome of today’s vote and appreciate the strong support demonstrated by our shareholders,” said President and CEO Gary Friedman in a news release that also said 99 percent of votes cast favored the buyout.

The deal is expected to close next week. The company, which operates 100 stores and 10 outlets, rebufffed an offer from Sears Holdings—at $4.55 per share—with Restoration Hardware officials saying the Sears offer was subject to more uncertainties than Catterton’s proposal.

The retailer, which posted a $19.8 million loss in its most recent quarter, has annual sales of $722 million. Its shares have ranged from $2.56 to $7.30 over the past year.

On Thursday, Restoration Hardware officials said the company had agreed to settle a shareholder lawsuit for $3.7 million. Raymond Hemming, chairman of the board’s independent committee, said the legal action was without merit, but the company settled to clear the way for the merger that provides a “substantial premium” to shareholders.