September 28, 2022

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Kohl's Enters Exclusive Sale Talks With The Franchise Group

Kohl’s Enters Exclusive Sale Talks With The Franchise Group

The Kohl logo is displayed on the outside of Kohl’s store on January 24, 2022 in San Rafael, California.

Justin Sullivan | Getty Images

kohl On Monday, it said it had entered into exclusive negotiations with retail holding company Franchise Group, which is proposing to buy the retailer for $60 per share.

Such a price would value Kohl’s at approximately $8 billion.

Kohl’s shares closed Monday at $42.12, giving the retailer a market value of about $5.4 billion.

Franchise Group is working with Oak Street Real Estate Capital to fund the deal mostly through real estate, according to a person familiar with the matter. The person requested anonymity because the deal was not finalized.

A representative of Oak Street Real Estate declined to comment.

The transaction remains subject to the approval of the boards of directors of both companies. kohl He said in a press release. She added that there was no guarantee that any agreement would be reached.

The three-week exclusivity period will allow the franchise group — which owns The Vitamin Shoppe and Buddies Home Furnishings, among other brands — and its financing partners to finalize their due diligence procedures and financing arrangements, and for the two parties to complete binding documentation negotiations, Coles said.

The retailer added that it would have no further comment until an agreement was reached or discussions ended.

The epic at Kohl’s was He plays for more than half a year.

The department store chain outside the mall was the first Urged in early December 2021 by New York hedge fund Engine Capital to consider selling Or another alternative to increase its share price. At the time, Kohl’s shares were trading around $48.45.

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In mid-January, activist hedge fund Macellum Advisors lobbied Kohl’s to consider selling. Macellum’s CEO, Jonathan Doskin, argued that CEOs were “fundamentally mismanaging the business.” He also said that Kohl has a lot of potential left to open her real estate.

In early February, Kohl’s said it had brought in bankers at Goldman Sachs and PJT Partners to aid its retail offerings.

Last month , Kohl’s reports that its three-month sales period ended on April 30th It fell to $3.72 billion from $3.89 billion in 2021. The company also lowered its earnings and revenue forecasts for the full fiscal year, disappointing investors and confusing the picture of a potential deal.

Kohl’s shares hit a 52-week high of $64.38 in late January.