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Received takeover bids from private-equity firm Sycamore Partners and retail holding company
FRG -0.69%
According to people familiar with the matter.
Sycamore’s bid values the Wisconsin department-store chain in the mid-$50sa, while
Offered about $60, some said, the equivalent of about $7 billion or $8 billion.
KSS 2.44%
The stock closed Thursday at $41.18.
Other details of bids for
KSS 2.44%
What has been amusing for months to acquire could not be learned, including whether anyone else made a deposit.
KSS 2.44%
People said a board meeting is expected in the coming days to review the bids. There’s no guarantee that Kohl’s will be receptive to a deal or that one will come together. People said that if a deal comes along, it will have several weeks left.
Kohls, which has said it is exploring strategic options, recentlyDefeated an active investor’s attempt to overhaul its board, Shares of the company are down 17% so far this year, which has been under widespread selling pressure in the market.
Shares of Kohl’s rose nearly 8% in after-hours trading on Thursday after the Wall Street Journal reported on the bids.
The Wall Street Journal reported in March that Kohl’s Sycamore as well as Canada’s Hudson’s Bay. was attracting interest from, parents of Sachs. A person familiar with the matter said Hudson’s Bay has decided against bidding.
Reuters previously reported that
Was one of the contenders for Kohl’s.
Weeks earlier, Kohls indicated to suitors that he believed the company was worth at least $70 per share, although market conditions for retailers have since worsened, weak earnings report by Target Corp. and
walmart Inc.
Due to which their shares were affected. Financing for leveraged buyouts has also become more difficult as a result of market turmoil.
Kohl’s was struggling before the pandemic. Its operating margin fell to 6.1% in 2019 from 11.5% in 2011, while its sales changed little. Then the coronavirus pandemic hit, taking a toll on sales and wiping out profits in 2020.
Sales and profits jump in 2021, but retailer’s stock as of January 2022 was worth less than it was two decades ago,
Merger activity has slowed in recent weeks as rising interest rates and market volatility make it more expensive and difficult to deal with. Financing deals can be especially difficult in the notoriously volatile retail industry, as lenders need to be confident about future cash flows.
People familiar with the matter have said that Kohl’s buyers would like to monetize its real estate holdings, which have drawn interest from investment firm Oak Street Real Estate Capital LLC.
New York-based Sycamore focuses on consumer and retail investments. this in 2020 agree to buy Ann Taylor owns LOFT, Lane Bryant and Asena Retail Group Inc.’s other chains out of bankruptcy and other companies including Staples Inc., Express and The Limited.
The Franchise Group primarily acquires and manages franchise companies, which include Vitamin Shoppe, Pet Supply Plus and Friends Home Furnishing, among other brands.
write to Suzanne Kapner Suzanne.Kapner@wsj.com and Cara Lombardo cara.lombardo@wsj.com
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