Shares of home decor superstore chain At Home Group Inc. (HOME) - Get Report jumped Thursday after the company announced that it has agreed to be acquired by private equity firm Hellman & Friedman in a $2.8 billion all-cash deal.
At Home stockholders will receive $36 per share in cash, an approximately 17% premium over the company's closing price on Tuesday, and a 25% premium to the stock's 30-day moving average.
"After a thorough evaluation and diligent and thoughtful deliberations in consultation with our independent advisors, we are pleased to reach this agreement, which provides stockholders with immediate and substantial value for their investment," said Phil Francis, board chairman of the company.
The company's board considered the current state of the business, its outlook and opportunities while deciding whether to accept the bid.
"As we enter the next chapter for our company, H&F is the ideal partner to advance our At Home 2.0 long term strategy. Together with H&F, we will have the resources and flexibility to provide our customers with a differentiated experience that meets their evolving needs," said At Home CEO Lee Bird.
The company's board unanimously approved the merger agreement and has recommended that its shareholders do the same.
The transaction is expected to close in the third quarter this year, subject to shareholder approval.
The company will become privately-held once the deal closes and will no longer trade on the U.S. stock exchange.
At Home can still solicit competing proposals from third parties during a 40-day "go-shop" period following the date of the execution of the merger agreement.