Macy's Seeks Experienced Retail Private Equity Buyer

Macy's Seeks Experienced Retail Private Equity Buyer

Private equity news the week of January 22nd, 2024.

Insights

Chart of the Week: Two weeks ago, Goldman Sachs said take-private deals had reached an all-time high. In a recent case study, Value Add explored why operating as a private company was critical to the turnaround of Dell Technologies. “We can go faster on the transformation journey in a private setting,” said Dell’s former-CFO Tom Sweet. “We’re also making better investment decisions on a longer time horizon. We’re thinking about what’s the right three-to-five-year answer, versus how this affects us in the next 90 days relative to an earnings-per-share target.” Read the full case study.

More Insights

  • Private Equity is Recruiting More Public Company Execs (Read More)
  • Private Equity Operating Trends Report 2024 (Read More)
  • Turnaround Case Study: Dell Technologies (Read More)
  • The 100 Largest Private Equity Buyouts of All-Time (Read More)
  • Private Equity Firms Are Increasing Exposure to These Industries (Read More)

Deal News

Macy’s has rejected a $5.8 billion takeover bid from Arkhouse Management and Brigade Capital Management. The real estate investor and hedge fund proposed a possible price revision if granted more access to Macy’s financial information. However, the board dismissed the offer as too low for further consideration. According to Reuters, the Macy’s board is only open to offers from buyout firms with a successful track record in retail sector turnarounds. (Source)

Arcline has reached an agreement to acquire industrial manufacturer Kaman in a $1.8 billion take-private deal. Kaman, a producer of aviation parts for commercial aerospace and defense, has been publicly traded since the 1980s but has seen a consistent stock price decline since 2019. In Q3 2023, the company reported revenues of $183 million and EBITDA of $25 million. (Source)

Apollo Global Management is reportedly considering a bid for National Amusements, the parent company of Paramount, CBS, MTV, and other media brands. The company’s stock has plummeted over -85% since 2021, following the death of former majority owner and chairman Sumner Redstone. (Source)

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