At Home Group on Thursday announced it has entered into a deal to be acquired by private equity firm Hellman & Friedman for an all-cash offer of $2.8 billion, including debt.
Through the deal, At Home would become a privately held company no longer trading on the New York Stock Exchange. At Home shareholders will receive $36 a share in cash, a premium of about 17% from the May 4 closing price of $30.67, according to the announcement.
The transaction is expected to close in the third quarter this year, subject to customary closing conditions. At Home may solicit alternative acquisition proposals from additional parties during a 40-day "go-shop" period after the merger agreement execution date, the company said.
Hellman & Friedman's acquisition of At Home comes as the category has received a boost in demand and sales as a result of the circumstances of the past year.
While many nonessential retailers this past year posted steep sales declines, home retailers like At Home, Overstock and Wayfair have been able to reap the benefits.
The home took center stage this past year. As consumers began spending more time in their homes, they began to invest more into their personal spaces to make them more comfortable and conducive to their "new normals." Some even migrated from cities to larger houses in the suburbs, further accelerating growth in the category.
Over the course of the year, the retailer expedited a plan to introduce buy online, pick up in store options across its brick-and-mortar footprint. At Home ended the year with nearly 220 stores in 40 states, and in late March reaffirmed its long-term commitment to opening over 600 stores.
"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," Chairman and CEO Lee Bird said in a statement. "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 went public in 2016 and previously received investments from private equity firms Starr Investment Holdings and AEA Investors, which acquired the retailer in 2011.