NEW YORK -- The Knot, a media company devoted to weddings, nesting and babies, 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 Feb. 25, the day the purchase agreement was signed.
The Knot funded the repurchase with its available cash. At Dec. 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 Dec. 31, 2010, The Knot had approximately 34.3 million shares outstanding.
“We are pleased that Macy’s was able to realize significant value from our investment in The Knot and WeddingChannel.com,” said Karen Hoguet, CFO 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. Sachse did not participate in the deliberations by The Knot Board of Directors to approve the transaction.