Weddings and related lifestyle company The Knot (NSDQ: KNOT) has paid $37.7 million to buy back all 3.7 million shares of its common stock owned by Macy’s. The retailer’s holdings represented 10.7 percent of The Knot’s outstanding shares. The details of why The Knot decided to buy back the shares weren’t provided, as Macy’s said only that it had “achieved our strategic goals as owners.”
Still, the companies insist it’s not a divorce; the two will still collaborate on their media and registry services. The Knot’s board had previously authorized the company to spend up to $50 million to buyback shares as part of a larger program.
Even through the recession, The Knot had held fairly stable, as consumers continued to make wedding plans. The ad recovery has put it in an even stronger position, so that was probably part of the reason behind the decision buy back shares. Release