Brigade and Arkhouse increase Macy's takeover offer to $6.6B

After the department store chain rejected their previous offer as being too low, real estate investment firms Arkhouse Management and Brigade Capital Management increased their offer for Macy's, the companies announced on Sunday.

At $24 per share, or roughly 14% more than its previous offer of $21 per share, the firms are now willing to purchase Macy's stock that they do not currently own.

The company is valued at $6.6 billion, which is a premium of around 33% over its most recent finish on Friday of $18.01.

According to Arkhouse, they will keep providing Macy's with a compelling substitute option by selling the business to them for a significant profit. As a result, Macy's stockholders would receive substantial value and quick liquidity.

Macy's said in a different statement that the Macy's Inc. Board would thoroughly examine and assess the most recent proposal.

When the department store operator expressed concerns about the financing and valuation of the deal, the two investment firms withdrew their proposal to purchase the shares of Macy's they did not already own in December of last year for $21 per share.

Similar to other established department store owners, Macy's has found it difficult to compete with colleagues that have smaller brick-and-mortar footprints or with younger, online rivals. Arkhouse and Brigade now have a chance to persuade Macy's to consider a sale.

After the investment firm nominated nine executives with experience in retail, real estate, and capital markets to the department store's 14-member board last month, Macy's is also up against a challenge from Arkhouse Management for a seat on the board.