Investor Group Eyes $5.8 Billion Macy’s Deal

( – The price of Macy’s stock recently saw a 20% jump in trading following news that an investor group has put in a $5.8 billion offer to buy the company.

The buyout proposal was submitted by real-estate investment firm Arkhouse Management and global asset management company Brigade Capital Management on December 1. The two organizations already own stock in Macy’s and the proposal covers the remainder of the stock they don’t own.

If the deal goes through, the shareholders will get $21 per share, around 32% higher than the most recent average stock price for the company’s shares. Furthermore, the proposal also indicates that the investor group would be willing to increase its per-share offer after a period of due diligence. The investor company said that it believes that Macy’s stock is currently undervalued in trading – shares for the company have traded at a high of $70 per share, but that was way back in 2015.

Macy’s continues to be one of the U.S.’ major retailers, but has since seen a dip in profits due to stiff competition. It reported roughly $1.2 billion of profit on $24.4 billion in revenue for 2022. That figure is slightly lower than the profit of $1.4 billion on a revenue of $24.5 billion for the previous year. In comparison, the company reported sales of more than $28 billion in 2014. The company operates close to 500 locations under its own name, but it also operates 30 stores under the higher-end Bloomingdale’s banner. Macy’s also owns Bluemercury, a chain of skin-care and beauty stores that currently has 160 locations.

The deal would also effectively make Macy’s a privately-owned company. The board of the retailer is still mulling over the proposal, and there is no indication as of press time as to how the board views the buyout.

There is also speculation that the deal could be about the retailer’s real estate assets, but so far, the investor group and Macy’s have all declined to comment on the proposed deal.

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