Arkhouse Issues Statement on Settlement with Macy’s

Rhea-AI Summary

Arkhouse Management Co. LP settles with Macy's, Inc. appointing director nominees to the Board of Directors. Discussions progress towards a potential acquisition. Legal and financial advisors engaged in the process.

Market Research Analyst

The appointment of Ric Clark and Rick Markee to Macy's Board of Directors signifies a strategic move aimed at enhancing the company's dealmaking capabilities. Their expertise in this arena suggests that Macy's is positioning itself to be more aggressive in pursuing transactions that could reshape its market presence. Shareholders may anticipate potential shifts in the company's strategy, which could include divestitures, acquisitions, or other forms of restructuring.

From a market research perspective, the introduction of directors with a strong background in dealmaking could signal a shift towards a more proactive approach in adapting to the rapidly changing retail landscape. Given the competitive pressures from e-commerce and changing consumer behaviors, Macy's may be looking to leverage these new board members' experience to navigate these challenges more effectively.

Financial Analyst

The involvement of financial and legal advisors, such as Jefferies Group LLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP, highlights the seriousness of the potential acquisition talks. This development may have implications for Macy's stock price as the market reacts to the possibility of a buyout. Investors will be closely monitoring any changes in the company's financial health and market valuation.

Due diligence is a critical step in acquisition discussions and it indicates that the buyer group is advancing towards a potential offer. This stage of the process will involve a thorough examination of Macy's financial statements, assets, liabilities and future earnings potential. The outcome of this due diligence will be a key factor in determining the offer price and the structure of any proposed transaction.

Corporate Governance Expert

The settlement between Arkhouse and Macy's, resulting in the addition of Arkhouse's nominees to the Board, suggests that the management is open to considering new strategic directions. This move may improve governance by ensuring that the interests of a significant stakeholder are directly represented on the Board. The presence of these new directors on the Finance Committee also indicates that they will have substantial influence over the evaluation of the acquisition proposal.

It's important to note that while these appointments may facilitate a transaction that Arkhouse advocates for, they also raise questions about potential conflicts of interest. The Board's responsibility is to act in the best interests of all shareholders, not just the ones proposing a deal. The Finance Committee will need to carefully navigate these dynamics to maintain the trust of all stakeholders.

NEW YORK--(BUSINESS WIRE)-- Arkhouse Management Co. LP (together with its affiliates, “Arkhouse”, “we” or “us”), which owns a significant stake in Macy’s, Inc. (“Macy’s” or the “Company”) (NYSE: M), today issued the following statement regarding its settlement with the Company, including the appointment of its director nominees Richard (Ric) Clark and Richard (Rick) L. Markee to the Board of Directors (the “Board”) of the Company and the Board’s Finance Committee. The following is attributable to Gavriel Kahane and Jonathon Blackwell, Arkhouse Managing Partners.

“Ric Clark and Rick Markee bring tremendous dealmaking experience to Macy’s Board and will be instrumental in maximizing value for shareholders. As a result of our efforts, our buyer group has begun receiving due diligence to progress discussions toward a potential transaction to acquire the Company. The appointment of Clark and Markee to the Board and the Finance Committee, which is tasked with reviewing our proposal and any alternative transactions, will ensure that our discussions continue to be constructive and that our proposal is treated seriously and expeditiously. We appreciate the Board’s engagement and look forward to working with them to unlock shareholder value.”

Advisors

Cadwalader, Wickersham & Taft LLP is serving as legal counsel and Longacre Square Partners is serving as strategic advisor to Arkhouse. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to the buyer group and Jefferies Group LLC is serving as financial advisor to the buyer group.

About Arkhouse

Arkhouse is a New York-based investment firm that takes a private equity approach to investing in the public markets. Arkhouse focuses on M&A strategies to unlock value dislocations created by the mispricing of assets across public and private markets. Arkhouse’s team of professionals consists of real estate and public equity specialists who have closed more than $25 billion worth of real estate transactions and have an 18-year shareholder activism track record.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240410385535/en/

Arkhouse

Longacre Square Partners

Scott Deveau / Joe Germani

arkhouse@longacresquare.com

Source: Arkhouse Management Co. LP

FAQ

What is the name of the company settling with Macy's, Inc.?

Arkhouse Management Co. LP is settling with Macy's, Inc.

Who are the director nominees appointed to the Board of Directors?

Richard (Ric) Clark and Richard (Rick) L. Markee are appointed as director nominees to the Board of Directors.

What is the purpose of the appointment of Clark and Markee to the Board and Finance Committee?

The appointment is to maximize value for shareholders and progress discussions towards a potential transaction to acquire the Company.

Which legal counsel is serving Arkhouse in this settlement?

Cadwalader, Wickersham & Taft LLP is serving as legal counsel to Arkhouse.

Who is the strategic advisor to Arkhouse in this settlement?

Longacre Square Partners is serving as the strategic advisor to Arkhouse.