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Report: Tower Three divests remaining stake in Restoration Hardware


New York -- A report by Wall Street Journal revealed that private equity investor Tower Three Partners will sell its final 3.9 million shares in Restoration Hardware Holdings, marking an exit for the buyout firms that acquired the home furnishings retailer in 2008.

Restoration Hardware’s private-equity backers have been cashing out amid a 90% rally in the stock this year, according to the report.

Last week, Catterton Partners sold 4 million shares of Restoration Hardware, according to a filing, and hedge fund firm Glenhill Capital, another large holder, sold an additional 1 million shares about the same time. Both offerings represented the remaining stakes in the retailer held by those firms.

Catterton, Tower Three and Restoration Hardware’s chief executive led a group taking the company public for about $177 million. Since returning to public ownership in a November initial public offering, the company’s stock-market value has increased to about $2.6 billion, according to FactSet data.

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