Sotheby’s to go Private in Late 2019 in Nearly $4B Deal
Domenico De Sole, chairman of Sotheby’s Board of Directors, says that the board of directors approved the purchase deal after a comprehensive review. “After more than 30 years as a public company, the time is right for Sotheby’s to return to private ownership to continue on a path of growth and success," he says.
NEW YORK CITY—Famed auction house Sotheby’s has announced it has signed an agreement to be taken private by BidFair USA, an entity wholly owned by media and telecom entrepreneur and art collector Patrick Drahi in a deal valued at $3.7 billion.
Sotheby’s announced this morning that its board of directors had approved a plan that will have BidFair pay $57 in cash per share of Sotheby’s common stock. The transaction would result in Sotheby’s returning to private ownership after 31 years as a public company traded on the New York Stock Exchange.
The offer price represents a premium of 61% to Sotheby’s closing price on June 14, 2019 and a 56.3% premium to the company’s 30 trading-day volume weighted average share price. The transaction is expected to close in the fourth quarter of 2019.
Tad Smith, Sotheby’s CEO, says, “Patrick Drahi is one of the most well-regarded entrepreneurs in the world, and on behalf of everyone at Sotheby’s, I want to welcome him to the family. Known for his commitment to innovation and ingenuity, Patrick founded and leads some of the most successful telecommunications, media and digital companies in the world. He has a long-term view and shares our brand vision for great client service and employing innovation to enhance the value of the company for clients and employees.”
He adds, “This acquisition will provide Sotheby’s with the opportunity to accelerate the successful program of growth initiatives of the past several years in a more flexible private environment. It positions us very well for our future and I strongly believe that the company will be in excellent hands for decades to come with Patrick as our owner.”
Domenico De Sole, chairman of Sotheby’s Board of Directors, says that the board of directors approved the purchase deal after a comprehensive review. “After more than 30 years as a public company, the time is right for Sotheby’s to return to private ownership to continue on a path of growth and success,” he says.
Sotheby’s has been uniting collectors with world-class works of art since 1744. Sotheby’s became the first international auction house when it expanded from London to New York in 1955, the first to conduct sales in Hong Kong in 1973, India in 1992 and France in 2001. and the first international fine art auction house in China launching operations there in 2012.
Today, Sotheby’s presents auctions in 10 different salesrooms, including New York, London, Hong Kong and Paris. Sotheby’s offers collectors the resources of Sotheby’s Financial Services, the world’s only full-service art financing company, as well as the collection, artist, estate and foundation advisory services of its subsidiary, Art Agency, Partners. Sotheby’s presents private sale opportunities in more than 70 categories, including S|2, the gallery arm of Sotheby’s Global Fine Art Division, and three retail businesses: Sotheby’s Wine, Sotheby’s Diamonds, and Sotheby’s Home, the online marketplace for interior design. Sotheby’s has a global network of 80 offices in 40 countries and is the oldest company listed on the New York Stock Exchange (BID).
Not part of the transaction is national residential brokerage firm Sotheby’s International Realty Affiliates LLC, which is a subsidiary of Madison, NJ-based Realogy Holdings Corp.
“I am honored that the Board of Sotheby’s has decided to recommend my offer,” says Drahi. “Sotheby’s is one of the most elegant and aspirational brands in the world. As a longtime client and lifetime admirer of the company, I am acquiring Sotheby’s together with my family. We thank Domenico and the rest of the Sotheby’s Board for its support and look forward to getting started with Tad and the wonderful members of his team to define our future.”
The 55-year old Drahi is founder and president of the board and controlling shareholder of Altice Europe, as well as chairman of the board and controlling shareholder broadband communications and video services company Altice USA, which is headquartered in New York City.
Altice Europe is listed on Euronext Amsterdam and comprises operations notably in France, Portugal, Israel and the Caribbean, serving 30 million customers. Altice USA, which is listed on the NYSE serves approximately 5 million customers across 21 states, including New York, New Jersey and Texas.
LionTree Advisors is serving as financial advisor to Sotheby’s in connection with the transaction, and Sullivan & Cromwell LLP is serving as the company’s legal counsel. BNP Paribas and Morgan Stanley are acting as financial advisors to BidFair, BNP Paribas acted as sole financing provider, and Hughes Hubbard & Reed LLP and Ropes & Gray International LLP are serving as its legal advisors.