At Home Group Inc. is going private.
The fast-growing value home-décor retailer has agreed to be acquired by private-equity firm Hellman & Friedman in an all-cash transaction valued at $2.8 billion, including the assumption of debt. Under the terms of the deal, At Home stockholders will get $36.00 per share in cash, a premium of about 17% to the May 4 closing stock price of $30.67 on May 4, which was the last trading day before media speculation of the deal.
“As we enter the next chapter for our company, H&F is the ideal partner to advance our At Home 2.0 long term strategy,” said At Home chairman and CEO Lee Bird.” Together with H&F, we will have the resources and flexibility to provide our customers with a differentiated experience that meets their evolving needs.”
At Home, whose stores average about 100,000 sq. ft. and sell more than 50,000 home décor items, plans to open 12 to 15 stores across the country this year. The retailer currently operates 226 locations in 40 states, and sees the long-term potential of operating 600-plus stores. In April, At Home opened its first location in New York City.
“As the leading value retailer of home décor offering unmatched breadth and depth of product assortment at everyday low prices,” said Erik Ragatz, partner at H&F. “At Home is well positioned to continue its long track record of store expansion and growth. At Home’s differentiated, low-cost operating model is disruptive to the traditional home channels and provides a strong opportunity for market share gain.”
The transaction is expected to close during the third quarter of calendar year 2021.