CAS Investment Partners Releases Presentation Detailing its Valuation Analysis & Opposition to At Home’s Sale to Hellman ...
June 24 2021 - 8:30AM
Business Wire
Urges Stockholders to Visit
www.ProtectAtHome.com to Download the Presentation and Learn More
About Our Opposition to H&F’s Grossly Undervalued $37 Per Share
Tender
Presentation Highlights At Home is the Clear
Winner in its Category With a Significant Opportunity to Grow and
Thrive in the Public Market
Sees Clear Path to More Than $70 Per Share
in Value if H&F Tender is Rejected and the Company Remains on a
Strong Trajectory
CAS Investment Partners, LLC (together with its affiliates,
“CAS” or “we”), which beneficially owns approximately 17% of the
outstanding common stock of At Home Group Inc. (NYSE: HOME) (“At
Home” or the “Company”), today released a presentation detailing
its analysis and views regarding the insufficient $37 per share
offer made by funds advised by Hellman & Friedman LLC
(collectively, “H&F”) to acquire the Company. The presentation
can be downloaded at www.ProtectAtHome.com.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20210624005579/en/
CAS became At Home’s largest stockholder because we believe the
Company is a winning retailer with clear momentum, a considerable
growth runway and significant margin expansion opportunities. Our
analysis shows that At Home has the potential to produce tremendous
value for stockholders in the public market.
To help investors better understand our view that
the intrinsic value of At Home is more
than $70 per share – meaningfully more than H&F’s
inadequate tender offer – our presentation lays out the
transaction’s numerous issues and details our response to each
flawed point:
ISSUES WITH AT HOME / H&F
TRANSACTION TERMS
CAS RESPONSE
- The Special Committee wrote off positive earnings momentum
- At Home’s recent earnings signal a bright standalone
future
- The Special Committee assumes catastrophic margin degradation
below 2019 levels
- Our projections provide a demonstrable bridge to margin
expansion above historical levels
- Goldman Sachs’ DCF analysis is flawed
- Basic, supportable adjustments imply a far higher
valuation
- Comps previously cited by At Home are conspicuously absent from
proxy and cherry-picked “precedent” comps are low growth, mature
concepts
- At Home’s own comps suggest a higher valuation based on EBITDA
and earnings multiples
- At Home’s claims of running a thorough sales process ring
hollow
- Mr. Bird spent years engaging with H&F – and stands to make
$100+ million while maintaining upside
- The Board failed to run a comprehensive review of strategic
alternatives
- Standalone path and leveraged recapitalization present superior
opportunity
We encourage stockholders to closely review our analysis and
suggest that before deciding to tender your shares, you ask
yourself one simple question:
Does this transaction provide fair
consideration for the Company’s strong track record of tangible
business improvements, material progress throughout the pandemic
and distinct competitive advantage in the expanding home décor
category?
CAS believes the answer is “no,” which is why we will not tender
into this grossly flawed sale.
www.ProtectAtHome.com
About CAS Investment Partners,
LLC
CAS Investment Partners, LLC is a value-focused investment
management firm with offices in New York City and Connecticut. The
firm was founded in 2012 by Clifford A. Sosin.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210624005579/en/
For Investors:
Saratoga Proxy Consulting John Ferguson / Joe Mills,
212-257-1311 jferguson@saratogaproxy.com /
jmills@saratogaproxy.com
For Media:
Profile Greg Marose / Charlotte Kiaie, 347-343-2999
gmarose@profileadvisors.com / ckiaie@profileadvisors.com
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