CAS Investment Partners Sends Letter to At Home Group Stockholders

CAS Investment Partners, LLC (together with its affiliates, “CAS” or “we”), which beneficially owns approximately 17% of the outstanding common stock of At Home Group Inc. (NYSE: HOME) (“At Home” or the “Company”), today sent the below letter to the Company’s stockholders. The letter can also be downloaded at www.ProtectAtHome.com.

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Dear Fellow Stockholder,

CAS Investment Partners, LLC (together with its affiliates, “CAS” or “we”) holds approximately 17% of the outstanding common stock of At Home Group Inc. (“At Home” or the “Company”), making us the Company’s largest stockholder. We focus on conducting fundamental research and making value-oriented investments. We have a successful history of investing in consumer and retail entities that include Carvana Co. (NYSE: CVNA), B&M European Value Retail S.A. (LSE: BME), Herbalife Nutrition Ltd. (NYSE: HLF) and Party City Holdco Inc. (NYSE: PRTY).

We are writing to you today regarding the proposed sale of At Home to funds advised by Hellman & Friedman LLC (collectively, “H&F”). Based on our thorough analysis of At Home’s business and the transaction terms, we have concluded that H&F’s original offer of $36 per share and its recently revised offer of $37 per share grossly undervalue the Company and deprive stockholders of meaningful value. We urge you to reject H&F’s insufficient tender offer.

Although we expect At Home’s Board of Directors (the “Board”) and H&F to dispute our analysis and tout the purported comprehensiveness of their transaction process, we urge you to see through this smokescreen. We believe you should instead focus on one question when considering whether or not to participate in the tender: Is $37 per share fair consideration for a business with clear momentum, a considerable growth runway and significant margin expansion opportunities?

We devote the rest of this letter to explaining why the answer to this question is clearly “no.” We lay out three of our primary conclusions:

1. At Home’s sales process has been flawed from the start and tainted by its Chairman and Chief Executive Officer’s apparent incentives to reach a deal with H&F;
2. The Board’s Special Committee seemingly wrote off the Company’s past several quarters of tangible business improvements and material progress, and;
3. The Board’s Special Committee discounted the Company’s significant future revenue and earnings potential, resulting in an overly-pessimistic valuation.

If H&F wants to acquire At Home, we believe it should pay a reasonable premium that appropriately reflects the Company’s path to enhanced value and the present consumer environment. It is disturbing that the Board’s Special Committee is trying to usher through a fire sale just as At Home is gaining considerable momentum and the pandemic’s economic overhang is subsiding. At Home, which can become the next great American retailer, has the ability to grow rapidly and produce tremendous value for stockholders in the public market.