Pickerington, OH—Is RG Barry Corp., owners of Dearfoams, baggallini and Foot Petals brands, closer to going private? Could be.
The company announced today it had entered into a non-disclosure standstill agreement with Mill Road Capital Management for the purchase of the company.
Mill Road Capital, which already owns an 8.57% stake in RG Barry, reportedly made the offer believing that RG Barry would be better able “to realize its full potential as a private entity.”
Mill Road has argued that RG Barry, which plans to continue growing through acquisitions, has been slow to deliver results to investors and that remaining publicly traded would result in regulatory costs and other expenses disproportionate to the size of the business.
RG Barry’s board of directors had already agreed to Mill Road’s due diligence request for its non-binding bid to acquire the company.
However, RG Barry also noted that it has “not made any decision” with respect to the proposal, adding: “There can be no assurance that any definitive offer will be made, that any definitive agreement will be executed or that the proposed transaction or any other transaction will be approved or consummated.”