Dec 10, 2023 - Business

Macy's reportedly receives $5.8 billion buyout offer

A Macy's store front.

Photo: Ethan Swope/Getty Images

Macy's has received an $5.8 billion take-private offer from an investor group that includes Arkhouse Management and Brigade Capital Management, according to the WSJ and other outlets.

The big picture: The department store operator has been an occasional target of activist investors, who have pressured Macy's to monetize its real estate.

  • Macy's operates over 500 stores in the U.S.

Details: The investment firms reportedly submitted a $21 per share proposal on Dec. 1, which represents around a 32% premium to Macy's stock the prior day.

  • It's also nearly a 21% premium to where Macy's shares closed this past Friday, as the stock is down 13.6% so far this year.
  • Macy's and Arkhouse declined to comment, while Brigade did not immediately respond to Axios' request for comment.

Reality check: Macy's had a strong third quarter relative to its past performance, but the department store category remains deeply troubled.

The bottom line: Retail M&A is beginning to show some life after a muted 2023.

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