Hellman & Friedman Takes At Home Private

Publicly traded At Home Group has agreed to be acquired by Hellman & Friedman in an all-cash transaction with an enterprise value of $2.8 billion.

At Home (NYSE: HOME) is an operator of home décor superstores with 226 stores in 40 states. The company’s stores – which average 110,000 square feet in size – offer more than 50,000 home products including furniture, mirrors, rugs, art, housewares, patio and seasonal decor.

At Home was founded in 1979 as Garden Ridge Pottery with one store near San Antonio in Schertz, Texas. Garden Ridge filed for Chapter 11 bankruptcy protection in 2004 and emerged in 2005. The business was acquired by AEA Investors in 2011 and began operating under the At Home brand in 2014. AEA took At Home public in August 2016.

Today, At Home is headquartered near Dallas in Plano, Texas, and in FY2021 had revenues of $1.7 billion and an adjusted EBITDA of $358 million. Based on the $2.8 billion enterprise valuation this equates to a valuation multiple of 7.8x.

At Home is led by its chairman and CEO Lee Bird who joined the company in December 2012. Mr. Bird is the past president of Nike Affiliates which owns and operates the Cole Haan, Converse, Hurley and Umbro brands. Earlier in his career, he was the executive vice president and chief operating officer of Gap, and the chief financial officer of Old Navy.

“As the leading value retailer of home décor offering unmatched breadth and depth of product assortment at everyday low prices, At Home is well-positioned to continue its long track record of store expansion and growth,” said Erik Ragatz, a partner at Hellman & Friedman. “At Home’s differentiated, low-cost operating model is disruptive to the traditional home channels and provides a strong opportunity for market share gain.”

San Francisco-headquartered Hellman & Friedman invests from $300 million to $1 billion in companies across a range of industries including software & technology, financial services, healthcare, retail & consumer, and other business services. The firm was founded in 1984 and has raised over $50 billion of capital, invested in over 100 companies, and is currently investing its $16.5 billion ninth fund.

Goldman Sachs is the financial advisor to At Home and Guggenheim Securities is advising Hellman & Friedman.

This transaction is expected to close in the third quarter of 2021.

© 2021 Private Equity Professional | May 11, 2021

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