Catterton to pay $267m for specialty retailer Restoration Hardware

US retailer Restoration Hardware has agreed to a $267 million buyout by consumer-focussed private equity firm Catterton Partners.


Catterton Partners has agreed to buy retailer Restoration Hardware in a $267 million (€182 million) transaction.

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Restoration Hardware sells classic American-style home furnishings, accents and gifts via catalog and online sales, as well as through its 102 retail stores and eight outlet stores in 30 US states, the District of Columbia and Canada.

The consumer-oriented Catterton will pay $6.70 per share in cash for the home décor chain, which represents a 150 percent premium to the company’s 7 November closing stock price. Restoration Hardware’s chief executive, Gary Friedman, and “several institutional stockholders” will also participate in the transaction, according to a statement.

Expected to close in the first quarter of next year, the transaction is subject to shareholder and regulatory approvals and is not subject to any financing conditions.

Restoration Hardware has 35 days to solicit alternative offers.

UBS Securities is financial advisor to the company, while Gibson, Dunn & Crutcher is acting as legal counsel to Catterton.

The 17-year-old Catterton manages more than $2 billion in capital and has previously invested in companies including juice company Odwalla, and restaurant chains P.F. Chang’s China Bistro, Outback Steakhouse and Baja Fresh Mexican Grill. The firm closed its sixth fund, valued at $1 billion, in June 2006.