Wedding and pregnancy magazine and website operator The Knot (NASDAQ:KNOT) has bought out Macy’s (NYSE:M) 10.7% stake in the company for $37.7 million.
The New York-based media outlet purchased roughly 3.67 million shares for $10.26 each, The Knot’s closing price on Friday.
The provider of advice through magazines, books and various websites used cash and cash equivalents to help fund the transaction. The Knot will retire the acquired stock. As of Dec. 31, the company had about 34.3 million shares outstanding.
“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,” said David Liu, the company’s chief executive.
The deal was made pursuant to a previously announced program under which The Knot’s board authorized the repurchase of up to $50 million of its stock in the open market or in privately negotiated transactions.
The stock repurchase does not affect the registry or advertising agreement between the two companies, and Macys.com chief marketing officer, Peter Sachse, will continue to serve as a director of The Knot.