Home Group, a United States based home decor superstore that operates 227 locations in 40 states has announced it will go private in a deal valuing it at $2.8 billion. Hellman and Friedman, the private equity firm purchasing Home, has $23 billion in contributed capital.
For Home Group, this deal marks a major turnaround. While the company has been able to consistently grow revenues, it struggled to remain profitable going into the beginning of 2020 and prior to COVID-19. However, once the pandemic hit, it was able to capitalize on increased consumer spending on the place where people were spending virtually all of their time: at home.
In no place is that more evident than the price per share Hellman & Friedman has agreed to pay. On the first day of trading in 2020, Home Group’s shares were valued at $5.08. Now, they are being taken private at $37 per share, a 21% premium to where shares were trading before rumors of the deal surfaced and a 628% premium to where they were trading at the beginning of last year.