Restoration Hardware Rejects Sears

Corte Madera, Calif. Restoration Hardware rejected a last-minute merger bid from Sears Holdings Corp., opting to stick with an offer made by a group led by private-equity firm Catterton Partners, according to the North Bay Business Journal.

The Catterton Group, which includes Restoration Hardware president and CEO Gary Friedman, has agreed to buy Restoration Hardware for $4.50 per share in a deal worth more than $177 million. The group also agreed to loan the retailer $25 million.

Sears made a competing offer of $4.55 per share yesterday, which was the last day of the go-shop period for the Catterton deal.

In a statement today, Restoration Hardware said it will stick with the Catterton agreement because an independent committee reviewing the offers decided that the new Sears offer “was not reasonably likely to result in a superior proposal.”

“With the expiration of the go-shop period, Restoration Hardware is continuing to work with Catterton Partners to complete the merger in a timely manner,” the statement said.

Restoration Hardware said previously that it hopes to close the deal with the Catterton group in the first quarter.