The Kohl’s logo is displayed on the exterior of a Kohl’s store on January 24, 2022 in San Rafael, Calif.
Justin Sullivan | Getty Images
kohlso On Monday it said it had exclusive talks with the retail holding company Franchise Group, which is proposing to buy the retailer for $60 per share.
Such a price tag would value Kohl’s at around $8 billion.
Shares of Kohl’s closed Monday at $42.12, giving the retailer a market value of about $5.4 billion.
According to a person familiar with the matter, the franchise group is working with Oak Street Real Estate Capital to finance the deal mostly through real estate. The person requested anonymity because the deal had not been finalized.
A representative for Oak Street Real Estate declined to comment.
The transaction remains subject to the approval of the boards of directors of both companies, kohlso said in a press release, It added that there is no guarantee that there will be an agreement.
The special three-week period allows the franchise group – which owns Vitamin Shoppe and Buddy’s Home Furnishing among other brands – and its financing partners to finalize due diligence and financing arrangements and negotiate documentation that is binding on the parties. Will do, Kohls said.
The retailer said it would have no further comment until an agreement is reached or discussions are over.
kohl’s saga Been playing for more than half a year.
The off-mall department store chain was the first Solicited to consider sale by New York-based hedge fund Engine Capital in early December 2021 or any other option to boost its stock price. At that time, Kohl’s shares were trading around $48.45.
In mid-January, activist hedge fund McCallum Advisors put pressure on Kohls to consider selling, McCallum’s CEO, Jonathan Duskin, argued that executives were “materially mismanaging” the business. He also added that Kohl’s has a lot of potential to unlock with its real estate.
In early February, Kohls said it had brought in bankers at Goldman Sachs and PJT Partners to help the retailer field offers.
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 slashed its profit and revenue forecast for the full fiscal year, disappointing investors and tarnishing the picture for a potential deal.
Kohl’s shares hit a 52-week high of $64.38 in late January.
