The Kohl logo was displayed on the exterior of a Kohl store on January 24, 2022 in San Rafael, California.
Justin Sullivan Getty Images
Kohl’s said Monday that it has entered into exclusive negotiations with the holding company Franchise Group, which is offering to buy the retailer for $ 60 a share.
Such a price would cost Kohl approximately $ 8 billion.
Shares of Kohl closed at $ 42.12 on Monday, giving the retailer a market value of about $ 5.4 billion.
Franchise Group is working with Oak Street Real Estate Capital to finance the deal mostly through real estate, according to a source familiar with the matter. The person requested anonymity as the deal was not finalized.
An Oak Street Real Estate spokesman declined to comment.
The transaction remains subject to approval by the two companies’ boards of directors, Kohl’s press release said. There is no guarantee that an agreement will be reached, it said.
The exclusive three-week period will allow Franchise Group – which owns Vitamin Shoppe and Buddy’s Home Furnishings, among other brands – and its financial partners to finalize due diligence and funding agreements, and the parties to complete binding documentation negotiations, Kohl’s said. .
The retailer added that there would be no further comments until an agreement was reached or discussions were suspended.
The Kohl’s saga has been going on for more than half a year.
The department store chain outside the malls was first called in early December 2021 by the New York-based hedge fund Engine Capital to consider selling or another alternative to raising its share price. At the time, Cole’s stock was trading at about $ 48.45.
Then in mid-January, activist hedge fund Macellum Advisors pressed Kohl’s to consider a sale. Macellum CEO Jonathan Duskin said executives had “substantially mismanaged” the business. He also said Kohl’s still has a lot of potential to unlock with its real estate.
In early February, Kohl’s said it had attracted bankers from Goldman Sachs and PJT Partners to help retailers bid.
Last month, Kohl’s reported that its sales for the three-month period ended April 30 fell to $ 3.72 billion from $ 3.89 billion in 2021. The company also cut its profit and revenue forecast for the full fiscal year. disappointing investors and blurring the picture of a potential deal.
Shares of Kohl hit a 52-week high of $ 64.38 at the end of January.
Add Comment