KNOT buys back all of its shares owned by Macy's:
The Knot, Inc. Announces Repurchase of Shares from Macy’s, Inc.
—The Knot Buys Back Approximately 10.7% of Its Outstanding Shares for $37.7 Million —
Press Release Source: The Knot, Inc. On Monday February 28, 2011, 8:00 am
NEW YORK--(BUSINESS WIRE)-- The Knot, Inc. (NASDAQ:KNOT - News), the premier media company devoted to weddings, nesting and babies, today announced that it had repurchased all shares in the Company owned by Macy’s, Inc.
Under the terms of the transaction, The Knot purchased all 3,671,526 shares of its common stock owned by Macy’s, which represent approximately 10.7% of the outstanding shares of The Knot. The aggregate purchase price was $37.7 million, based on a price of $10.26 per share, equal to the closing price of The Knot common stock on The Nasdaq Global Market on February 25, 2011, the day the purchase agreement was signed.
The Knot funded the repurchase with its available cash. At December 31, 2010, The Knot had cash and cash equivalents of $139.6 million. The repurchased stock will be retired by The Knot, returning to the status of authorized and unissued shares. At December 31, 2010, The Knot had approximately 34.3 million shares outstanding.
“Macy’s and its predecessor department stores have been long-time, valued shareholders of The Knot and our subsidiary WeddingChannel.com,” said David Liu, Chief Executive Officer of The Knot. “We thank Macy’s for its support as an owner in our business and look forward to our continuing relationship in which we drive our enormous audience of brides and their guests to Macy’s and Bloomingdale’s through innovative strategies and multiplatform marketing solutions.”
“We are pleased that Macy’s was able to realize significant value from our investment in The Knot and WeddingChannel.com,” said Karen Hoguet, Chief Financial Officer of Macy’s. “Although we have achieved our strategic goals as owners, we continue to see value from our media and registry services partnerships with The Knot.”
The stock repurchase transaction does not affect the registry or advertising agreements between The Knot and Macy’s. Peter Sachse, Chief Marketing Officer of Macy’s and Chairman of Macys.com, will continue to serve as a director of The Knot. Mr. Sachse did not participate in the deliberations by The Knot Board of Directors to approve the transaction.
The stock repurchase transaction with Macy’s was made pursuant to the previously announced program under which the Board of Directors of The Knot had authorized the repurchase of up to $50 million of the Company’s common stock from time to time on the open market or in privately negotiated transactions. This program will continue in effect, as reduced by the aggregate price of the shares repurchased from Macy’s, and may be suspended or discontinued at any time.
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